Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991 - SECT 59

59. (1) Section 160ZZO of the Principal Act is amended:

   (a)  by omitting paragraphs (1) (aa), (ab) and (ac);
(b) by inserting in subsection (1) "and Division 19A" after "other than this
section";

   (c)  by omitting from paragraph (1) (e) "or" and substituting "and";

   (d)  by adding at the end of subsection (1) the following word and
        paragraph:

"; and (g) if, at a particular time (in this paragraph called the `cessation
time') after the time of the disposal:

        (i)    the transferee ceased, or first ceased, to be a group company
               in relation to the transferor (otherwise than because of the
               dissolution of the transferor); and

        (ii)   the transferee had not disposed of the asset; the transferee is
               taken:

        (iii)  to have disposed of the asset at the cessation time for a
               consideration equal to the market value of the asset at the
               cessation time; and

        (iv)   to have immediately re-acquired the asset for a consideration
               equal to the market value of the asset at the cessation time.";

   (e)  by omitting subsections (2A), (2B) and (2C);

   (f)  by omitting from subsection (3) all the words after paragraph (b) and
        substituting "at all times during the year of income when both
        companies were in existence.";

   (g)  by inserting after subsection (3) the following subsection:

"(3A) For the purposes of this section, a company is taken to be a group
company in relation to another company at a particular time if, at that time:

   (a)  one of the companies was a subsidiary of the other company; or

   (b)  each of the companies was a subsidiary of the same company.";

   (h)  by omitting from subsection (4) "during a period (in this subsection
        referred to as the `relevant period'), being the whole or a part of a
        year of income" and substituting "at a particular time";

   (j)  by omitting from paragraph (4) (a) "at all times during the relevant
        period" and substituting "at that time";

   (k)  by omitting from paragraph (4) (b) "during any part of the relevant
        period" and substituting "at that time";

   (m)  by omitting from paragraph (4) (b) "after the relevant period" and
        substituting "after that time";

   (n)  by omitting from subsection (6) "during a year of income, or a part of
        a year of income" and substituting "at a particular time";

   (p)  by omitting from subsection (6) "during the year of income, or that
        part of the year of income" and substituting "at that time";

   (q)  by omitting subsection (10).

(2) Section 160zzo of the Principal Act is amended by adding at the end of
subsection (1) the following word and paragraph:

"; and (h) if:

   (i)  the transferor is dissolved after the time of the disposal; and

   (ii) at a particular time (in this paragraph called the `trigger time')
        after the time of the dissolution the transferee had not disposed of
        the asset and:

                (A)  a company that, at the time of the disposal, was a group
                     company in relation to the transferee disposes of a share
                     in the transferee; or

                (B)  the transferee issues a share to a person who was not, at
                     the time of the disposal, a group company in relation to
                     the transferee; the transferee is taken:

   (iii) to have disposed of the asset at, or at the earlier or earliest,
        trigger time for a consideration equal to the market value of the
        asset at, or at the earlier or earliest, trigger time; and

   (iv) to have immediately re-acquired the asset for a consideration equal to
        the market value of the asset at, or at the earlier or earliest,
        trigger time.".