Commonwealth Numbered Acts

FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 No. 97 of 1993 - SECT 20

20.(1) In addition to its effect apart from this section, section 160ZP of the
Income Tax Assessment Act 1936 also has the effect it would have if both of
the changes set out in subsections (2) and (3) of this section were made.

(2) The first change is that paragraphs 160ZP(7)(a), (b) and (ba) of the
Income Tax Assessment Act 1936 are to be replaced by the following paragraphs:

"(a) assuming that:

        (i)    an asset (within the meaning of the Financial Corporations 
               (Transfer of Assets and Liabilities) Act 1993 ) had been
               transferred by a transferring corporation within the meaning of
               that Act (the 'loss company') to a receiving corporation within
               the meaning of that Act (the 'gain company') on the last day of
               a particular year of income of the loss company (the 'notional
               transfer year'); and

        (ii)   the requirements of paragraphs 7(6)(a) and (b) of that Act were
               satisfied in relation to that transfer; that Act would have
               applied to that transfer; and

   (b)  the loss company incurred in respect of a year of income (the 'loss
        year') a net capital loss that, apart from this section, would be
        taken into account in ascertaining whether a net capital gain accrued
        to the loss company, or the loss company incurred a net capital loss,
        in respect of the next succeeding year of income; and

   (ba) the loss year is:

        (i)    the year of income in which that Act commenced; or

        (ii)   an earlier year of income; and

   (bb) both the following conditions are satisfied in relation to a year of
        income (the 'gain year') of the gain company:

        (i)    either:

                (A)  the gain year ends at the end of the notional transfer
                     year; or

                (B)  the gain year corresponds to the year of income of the
                     loss company next following the notional transfer year;

        (ii)   the gain year is:

                (A)  the year of income in which that Act commenced; or

                (B)  one of the 5 following years of income; and".

(3) The second change is that paragraphs 160ZP(7)(d) and (e) and subsection
160ZP(8) of the Income Tax Assessment Act 1936 are to be omitted.