Commonwealth Numbered Acts

FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 No. 97 of 1993 - SECT 15

15.(1) In determining:

   (a)  whether an amount is included in the assessable income of the
        transferring corporation under section 25, 25A, 26BB, 26C, 82Y or
        159GS of the Income Tax Assessment Act 1936; or

   (b)  whether an amount is allowable as a deduction to the transferring
        corporation under section 51, 52, 70B, 82Z or 159GS of that Act; in
        respect of a transfer of an asset, the transferring corporation is to
        be treated as if the transfer had not occurred. Receiving corporation
        not entitled to a deduction for expenditure incurred in acquiring
        asset

(2) A deduction is not allowable to the receiving corporation under section 51
of the Income Tax Assessment Act 1936 in respect of expenditure incurred in
the acquisition of an asset as the result of a transfer. However, this
subsection does not apply to the acquisition of trading stock.Receiving
corporation to inherit transferring corporation's cost base

(3) If an asset is transferred, then, in determining:

   (a)  whether an amount is included in the assessable income of the
        receiving corporation under section 25, 25A, 26BB, 26C or 82Y or
        Division 16E of Part III of the Income Tax Assessment Act 1936; or

   (b)  whether an amount is allowable as a deduction to the receiving
        corporation under section 51, 52, 70B or 82Z or Division 16E of Part
        III of that Act; in respect of the holding, or any subsequent
        disposal, of the asset, the receiving corporation is to be treated as
        if it had acquired the asset for a consideration equal to the amount
        that would have been the cost base to the transferring corporation of
        the asset for the purposes of Part IIIA of that Act if that Part had
        applied in relation to the transfer.