Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 40.288

  (1)   This section applies if:

  (a)   on or after 1   July 2001, a company (the transferor ) disposes of property that is not a depreciating asset to another company; and

  (b)   the companies are members of the same linked group at the time of the disposal; and

  (c)   apart from this section, the disposal would have resulted in the transferor having an additional decline in value (the deductible amount ) under subsection   40 - 35(5), 40 - 37(5), 40 - 40(4) or 40 - 43(4) of this Act; and

  (d)   the sum of:

  (i)   the money the transferor receives, or is entitled to receive, in respect of the disposal; and

  (ii)   the market value of any other property the transferor receives, or is entitled to receive, in respect of the disposal;

    is more than the deductible amount.

  (2)   There is no additional decline in value of the notional asset referred to in subsection   40 - 35(5), 40 - 37(5), 40 - 40(4) or 40 - 43(4) as a result of the disposal.

  (3)   Any amount that would be included in the transferor's assessable income under subsection   40 - 35(6), 40 - 37(6), 40 - 38(6), 40 - 40(5) or 40 - 43(5) of this Act, or subsection   40 - 830(6) of the Income Tax Assessment Act 1997 , as a result of the disposal is reduced by the deductible amount.