INCOME TAX ASSESSMENT ACT 1997 - SECT 122.205 Consequences for the company (creation case)
INCOME TAX ASSESSMENT ACT 1997 - SECT 122.205
Consequences for the company (creation case)(1) There are these consequences for the company in a creation case if the partners choose to obtain a roll - over.
(2) The first element of the created asset's * cost base (in the hands of the company) is the applicable amount from this table.
Creation case | |
Event No. | Applicable amount |
D1 | the total * incidental costs incurred that relate to the trigger event |
D2 | the total expenditure incurred to grant the option |
D3 | the total expenditure incurred to grant the right |
F1 | the total expenditure incurred on the grant, renewal or extension of the lease |
The expenditure can include a transfer of property: see section 103 - 5.
(3) The first element of the created asset's * reduced cost base (in the hands of the company) is worked out similarly.
A roll - over can delay the making of a capital gain or loss if:
• you dispose of a CGT asset, or all the assets of a business, to a company in which you own all the shares; or
• you create a CGT asset in such a company; or
• all the partners in a partnership dispose of partnership property to a company in which they own all the shares; or
• the partners create a CGT asset in such a company.
Guide to Division 124
124 - B Asset compulsorily acquired, lost or destroyed
124 - C Statutory licences
124 - D Strata title conversion
124 - E Exchange of shares or units
124 - F Exchange of rights or options
124 - I Change of incorporation
124 - L Prospecting and mining entitlements
124 - M Scrip for scrip roll - over
124 - N Disposal of assets by a trust to a company
124 - P Exchange of a membership interest in an MDO for a membership interest in another MDO
124 - Q Exchange of stapled ownership interests for ownership interests in a unit trust
124 - R Water entitlements