Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 122.35

What if the company undertakes to discharge a liability (disposal case)

Disposal of a CGT asset

  (1)   One of the requirements in this table must be satisfied if:

  (a)   you * dispose of a * CGT asset; and

  (b)   the company undertakes to discharge one or more liabilities in respect of it.

    (The * market value, or the * cost base, of an asset is worked out when you disposed of it.)

 

* What amount the liabilities cannot exceed

Item

In this situation:

the liabilities cannot exceed:

1

You * acquired the asset on or after 20   September 1985

The * cost base of the asset

2

You * acquired the asset before 20   September 1985

The * market value of the asset

Note:   There are rules for working out what are the liabilities in respect of an asset: see section   122 - 37.

Disposal of all the assets of a business

  (2)   One of the requirements in this table must be satisfied if:

  (a)   you * dispose of all the assets of a * business; and

  (b)   the company undertakes to discharge one or more liabilities in respect of the assets of the business.

    (The * market value, or the * cost base, of an asset is worked out when you disposed of it.)

 

What amount the liabilities cannot exceed

Item

In this situation:

The liabilities cannot exceed:

1

You * acquired all the assets on or after 20   September 1985

The sum of the * market values of the * precluded assets and the * cost bases of the other assets

2

You * acquired all the assets before 20   September 1985

The sum of the * market values of the assets

3

You * acquired at least one asset on or after 20   September 1985 and at least one before that day

For liabilities in respect of assets you * acquired on or after that day--the sum of the * market values of the * precluded assets and the * cost bases of the other assets;

For liabilities in respect of assets you * acquired before that day--the sum of the market values of those assets



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback