A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME    View history reference

Division 58 - Capital allowances for depreciating assets previously owned by an exempt entity    View history reference

Subdivision 58-A - Application    View history reference

SECTION 58-5  Application of Division  

 View history reference

58-5(1)  

This Division applies in 2 situations.

Entity sale

58-5(2)  

The first (an entity sale situation) is where:


(a) at a particular time on or after 1 July 2001, an entity is an *exempt entity; and
 View history reference


(b) just after that time, the entity's *ordinary income or *statutory income becomes to any extent assessable income.

58-5(3)  

In an entity sale situation:


(a) the entity is a transition entity; and


(b) the time when the entity's *ordinary income or *statutory income becomes to that extent assessable is the transition time; and


(c) the income year in which the *transition time occurs is the transition year for the entity; and


(d) the *depreciating assets the *transition entity *held just before the transition time are privatised assets.

Asset sale

58-5(4)  

The second (an asset sale situation) is where:


(a) at a particular time on or after 1 July 2001, an entity (the purchaser) whose *ordinary income or statutory income is to any extent assessable acquires a *depreciating asset from the Commonwealth, a State, a Territory or an *exempt entity; and
 View history reference


(b) the asset is acquired in connection with the acquisition of a *business from the Commonwealth, the State, the Territory or the exempt entity.
 View history reference

58-5(5)  

In an asset sale situation:


(a) the Commonwealth, the State, the Territory or the *exempt entity is the tax exempt vendor; and
 View history reference


(b) the time when the *depreciating asset is acquired is the acquisition time; and


(c) the income year in which the *acquisition time occurs is the acquisition year; and


(d) each *depreciating asset the purchaser acquires from the *tax exempt vendor at the acquisition time is a privatised asset.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page