Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT (NO. 2) 1980 No. 57 of 1980 - SECT 17

17. After section 82AJ of the Principal Act the following section is inserted:
Disposals within company group

"82AJA. (1) Paragraph (a) of sub-section (1) of section 82AG does not apply in
relation to a disposal of property after 19 August 1979 by a taxpayer being a
company, being a disposal occurring before the expiration of the period of 12
months after the date on which the property was first used, or installed ready
for use, by the taxpayer, if-

   (a)  the disposal by the taxpayer was to another company (in this
        sub-section referred to as the 'transferee') that was, at the time of
        the disposal, related to the taxpayer;

   (b)  the property was not, at any time (in this paragraph referred to as
        the 'relevant time') during that period of 12 months, owned by a
        person other than-

        (i)    in a case where the transferee was the holding company of the
               taxpayer-the transferee or a company related to the transferee
               at the relevant time;

        (ii)   in a case where the transferee was a wholly-owned subsidiary of
               the taxpayer-the taxpayer or a company related to the taxpayer
               at the relevant time;

        (iii)  in a case where the transferee was a wholly-owned subsidiary of
               another company (in this sub-paragraph referred to as the
               'holding company') of which the taxpayer was also a wholly-
               owned subsidiary-the holding company or a company related to
               the holding company at the relevant time; or

        (iv)   in a case where the transferee was a wholly-owned subsidiary of
               other companies (in this sub-paragraph referred to as the
               'parent companies') of which the taxpayer was also a
               wholly-owned subsidiary-a company that, at the relevant time,
               was a wholly- owned subsidiary of the parent companies;

   (c)  at any time during that period of 12 months when the property was
        owned by-

        (i)    in a case where the transferee was the holding company of the
               taxpayer-the transferee;

        (ii)   in a case where the transferee was a wholly-owned subsidiary of
               the taxpayer-the taxpayer; or

        (iii)  in a case where the transferee was a wholly-owned subsidiary of
               another company of which the taxpayer was also a wholly- owned
               subsidiary-that other company, the transferee, the taxpayer, or
               that other company, as the case may be, was an eligible public
               company in relation to the year of income in which that time
               occurred; and

   (d)  at no time during that period of 12 months did a person who owned the
        property-

        (i)    lease the property, let the property on hire under a
               hire-purchase agreement or otherwise grant a right to another
               person to use the property; or

        (ii)   use the property outside Australia or for a purpose other than
               the purpose of producing assessable income.



"(2) Where-

   (a)  pursuant to an order of a court made under the law of a State or
        Territory relating to companies-

        (i)    the whole of the undertaking, property and liabilities of a
               company (in this sub-section referred to as the 'relevant
               company') is vested in another company (in this sub-section
               referred to as the 'substituted company');

        (ii)   the persons who beneficially owned shares in the relevant
               company become the beneficial owners of all of the shares in
               the substituted company without reduction in their respective
               interests; and

        (iii)  the relevant company is dissolved; and

   (b)  for the purpose of the application of sub-section (1), the relevant
        company is the transferee referred to in sub-paragraph (i) of
        paragraph (b) of that sub-section, the taxpayer referred to in
        sub-paragraph (ii) of that paragraph, the holding company referred to
        in sub-paragraph (iii) of that paragraph or one of the parent
        companies referred to in sub-paragraph (iv) of that paragraph,
        paragraphs (b) and (c) of that sub-section apply, in relation to any
        time after the time when the conditions specified in paragraph (a) of
        this sub-section were satisfied, as if the substituted company were
        the transferee, the taxpayer, that holding company or that parent
        company, as the case may be.



"(3) For the purposes of this section, a company (in this sub-section referred
to as the 'first company') shall be taken to be related to another company (in
this sub-section referred to as the 'second company') at a particular time if,
at that time-

   (a)  the first company is the holding company of the second company;

   (b)  the first company is a wholly-owned subsidiary of the second company;

   (c)  the first company is a wholly-owned subsidiary of another company of
        which the second company is also a wholly-owned subsidiary; or

   (d)  the first company is a wholly-owned subsidiary of other companies of
        which the second compony is also a wholly-owned subsidiary.



"(4) For the purposes of this section, a company (in this sub-section referred
to as the 'holding company') shall be taken to have been the holding company
of another company (in this sub-section referred to as the 'relevant
subsidiary' ) at a particular time (in this sub-section referred to as the
'relevant time') if -

   (a)  the holding company is an eligible public company in relation to its
        year of income in which the relevant time occurred;

   (b)  the relevant subsidiary is an eligible subsidiary in relation to its
        year of income in which the relevant time occurred;

   (c)  at the relevant time, all of the shares in the relevant subsidiary
        were beneficially owned by-

        (i)    the holding company;

        (ii)   another company that is an eligible subsidiary in relation to
               its year of income in which the relevant time occurred; or

        (iii)  2 or more companies of the kind referred to in sub-paragraph
               (ii) or the holding company and a company or companies of the
               kind referred to in that sub-paragraph; and

   (d)  where, at the relevant time, any of the shares in the relevant
        subsidiary were beneficially owned by a company other than the holding
        company -if the relevant subsidiary had declared a dividend at the
        relevant time and there had been successive distributions of the
        relative parts of that dividend to and by each company and any trustee
        interposed between the relevant subsidiary and the holding company,
        the holding company would have had a right to receive, indirectly, or
        directly and indirectly, for its own benefit, the whole of the amount
        of that dividend.



"(5) For the purposes of this section, a company shall be taken to be a
wholly-owned subsidiary of another company at a particular time if, at that
time , the other company is the holding company of the first-mentioned
company.



"(6) For the purposes of this section, a company (in this sub-section referred
to as the 'relevant subsidiary') shall be taken to have been a wholly- owned
subsidiary of 2 or more other companies (in this sub-section referred to as
the 'parent companies') at a particular time (in this sub-section referred to
as the 'relevant time') if-

   (a)  the relevant subsidiary is an eligible subsidiary in relation to its
        year of income in which the relevant time occurred;

   (b)  each of the parent companies is an eligible public company in relation
        to its year of income in which the relevant time occurred;

   (c)  at the relevant time, all of the shares in the relevant subsidiary
        were beneficially owned by-

        (i)    the parent companies;

        (ii)   another company that is an eligible subsidiary in relation to
               its year of income in which the relevant time occurred; or

        (iii)  2 or more companies of the kind referred to in sub-paragraph
               (ii) or any one or more of the parent companies and a company
               or companies of the kind referred to in that sub-paragraph; and

   (d)  where, at the relevant time, any of the shares in the relevant
        subsidiary were beneficially owned by a company other than one of the
        parent companies-if the relevant subsidiary had declared a dividend at
        the relevant time and there had been successive distributions of the
        relative parts of that dividend to and by each company and any trustee
        interposed between the relevant subsidiary and the parent companies,
        the parent companies would have had rights between them to receive,
        indirectly, or directly and indirectly, for their own benefit, the
        whole of the amount of that dividend.



"(7) For the purposes of this section, a company shall be taken to be an
eligible subsidiary in relation to a year of income if, by virtue of
sub-section

(4) of section 103A, the company is a subsidiary of a public company in
relation to the year of income for the purposes of sub-paragraph (v) of
paragraph (d) of sub-section (2) of section 103A.



"(8) For the purposes of this section, a company shall be taken to be an
eligible public company in relation to a year of income if, by virtue of
paragra ph (a) of sub-section (2) of section 103A, the company is a public
company in relation to the year of income for the purposes of sub-section (1)
of section 103A.".