COMMONWEALTH OF AUSTRALIA
Taxation Administration Act 1953I, Chris Jordan AO, Commissioner of Taxation, make this determination under section 370-5 of Schedule 1 to the Taxation Administration Act 1953 .
1. Name of determination
This draft determination is the Taxation Administration (Remedial Power - Small Business Restructure Roll-over) Determination 2017.
Each provision of this determination specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information
| Column 1
|| Column 2
|| Column 3
|1. The whole of this determination
||The first day this determination is no longer liable to be disallowed, or to be taken to have been disallowed, under section 42 of the Legislation Act 2003.
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
This draft determination is made under section 370-5 of Schedule 1 to the Taxation Administration Act 1953.
Each modification of the operation of a provision of a taxation law as set out in a Schedule to this draft determination is determined for the purposes of section 370-5 of Schedule 1 to the Taxation Administration Act 1953.
Schedule 1 - Modifications
1. Depreciating assets transferred in a small business restructure roll-over
(1) The operation of:
- section 40-340 of the Income Tax Assessment Act 1997 ; and
- any other provision of a taxation law the operation of which is affected by the operation of that section (as modified by this instrument) in relation to an asset covered by item 8 of the table in subsection 40-340(1) of that Act;
is modified in the way set out below.
(2) If section 40-340 of that Act provides for roll-over relief in relation to a disposal of a depreciating asset because the condition in item 8 of the table in subsection 40-340(1) of that Act is satisfied in relation to the asset, that section has effect as if it also provided that the disposal of the asset has no direct consequences under the income tax law (other than Division 40 of that Act).
(3) The modification applies in respect of transfers on or after the day after this instrument commences.
(4) The modification does not affect the application of the income tax law in relation to:
- anything that happens in relation to the asset that does not directly relate to the transfer; or
- the ownership of the asset at any time.
1. Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the rule-maker is satisfied that appropriate and reasonably practicable consultation has been undertaken.
2. As part of the consultation process, you are invited to comment on the draft determination and its accompanying draft explanatory statement.
Please forward your comments to the contact officer by the due date.
| Consultation questions
1. Do you agree that the application of the SBRR under the law as enacted is leading to unintended outcomes?
2. Is the proposed Legislative Instrument reasonable and not inconsistent with the intended object or purpose of the law?
3. Does the proposed Legislative Instrument adequately address deficiencies in the current law? If not, are there other issues that should be addressed?
4. Does the proposed Legislative Instrument ensure that relevant provisions of Division 40 continue to operate in accordance with the intended purpose or object of the law?
5. Legislative instruments ordinarily apply prospectively and they cannot apply retrospectively to disadvantage an entity other than the Commonwealth (section 12 Legislation Act 2003 ). For the present proposal, prospective application is proposed. What application date should this instrument have? What would support a retrospective application date?
Chris Jordan AO
Commissioner of Taxation
Related Explanatory Statements:
CRP 2017/D2 - Explanatory Statement