Commonwealth Numbered Acts

FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 No. 97 of 1993 - SECT 16

16.(1) In determining:

   (a)  whether an amount is included in the assessable income of the
        transferring corporation under section 25 or 82Y of the
        Income Tax Assessment  Act 1936 ; or

   (b)  whether an amount is allowable as a deduction to the transferring
        corporation under section 51 or 82Z of that Act; in respect of a
        transfer of a liability, the transferring corporation is to be treated
        as if the transfer had not occurred. Receiving corporation not
        assessable in respect of assumption of liability

(2) An amount is not to be included in the assessable income of the receiving
corporation under section 25 or 82Y of the Income Tax Assessment Act  1936 in
respect of the assumption of the liability as a result of the transfer.
Assumption of liability by receiving corporation

(3) If a liability is transferred, then, in determining:

   (a)  whether an amount is included in the assessable income of the
        receiving corporation under section 25 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 or 82Z or Division 16E of Part III of
        that Act; in respect of the subsistence, or any subsequent transfer,
        of the liability, the receiving corporation is to be treated as if:

   (c)  it had been paid or given consideration for the original transfer; and

   (d)  the amount of the consideration were equal to the amount (if any) of
        the consideration paid or given to the transferring corporation in
        respect of the assumption by the transferring corporation of the
        liability.