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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 116 - Capital proceeds  

Special rules  

SECTION 116-85  Section 47A of 1936 Act applying to rolled-over asset  

 ITAA 36

116-85(1)  

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You reduce the *capital proceeds from a *CGT event that happens in relation to a *CGT asset you have if the conditions in this table are satisfied.
Conditions for reduction
ItemCondition
1You must have *acquired the asset from a company or *CFC
..........
2Either:
 (a)the company obtained a roll-over for the *CGT event that resulted in your *acquisition of the asset; or
 (b)the *CFC obtained a roll-over for that event in applying Division 7 of Part X of the Income Tax Assessment Act 1936 for the purpose of working out the *attributable income of a company in relation to any entity except a roll-over under Subdivision 124-J (about Crown leases), 124-K (about depreciating assets) or 124-L (about prospecting and mining entitlements)
..........
3The company or *CFC is taken, under section 47A of the Income Tax Assessment Act 1936 , to have paid you a dividend in relation to that event, and some or all of the dividend is included in your assessable income under section 44 of that Act

Note:

For roll-overs: see Divisions 122 , 124 and 126 .

116-85(2)  

The reduction is the lesser of:


(a) the amount of the dividend; and


(b) the amount of any *capital gain that, apart from the roll-over, the company or *CFC would have made from the *CGT event if its *capital proceeds from the event had been the asset's *market value (at the time of the event).
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Note:

This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936 .

116-85(3)  

(Repealed by No 96 of 2004)


 



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