Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 620.30

  (1)   This section applies if:

  (a)   there is a * balancing adjustment event because the body disposes of a * depreciating asset in an income year to the company because the body ceases to exist; and

  (b)   the disposal involves a * CGT event.

  (2)   This Act applies as if:

  (a)   there were roll - over relief under subsection   40 - 340(1) for the * balancing adjustment event; and

  (b)   the body were the transferor mentioned in that subsection and subsection   328 - 243(1A); and

  (c)   the company were the transferee mentioned in that subsection and subsection   328 - 243(1A).

Note:   Some effects of this are as follows:

(a)   the balancing adjustment event does not affect the body's assessable income or deductions (see subsection   40 - 345(1));

(b)   the company can deduct for the decline in value of the asset on the same basis as the body did (see subsection   40 - 345(2));

(c)   Division   45 (Disposal of leases and leased plant) applies to the company as if it had done the things the body did (see subsection   40 - 350(1)).

  (3)   Disregard paragraph   328 - 243(1A)(c) in determining whether subsection   328 - 243(1A) applies.