Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FOREIGN INCOME) ACT 1990 No. 5 of 1991 - SECT 39

39. After section 160ZF of the Principal Act the following section is
inserted: Adjustment where section 47A applies to rolled-over assets

"160ZFA. Where:

   (a)  either:

   (i)  because of Division 17, this Part does not apply to the disposal of an
        asset by a person (in this section called the `transferor') to another
        person (in this section called the `transferee'); or

   (ii) because of Division 17, in its application in accordance with Division
        7 of Part X, this Part does not apply, for the purpose of calculating
        the attributable income of a company under that Division in relation
        to any taxpayer, to the disposal of an asset by the CFC (in this
        section also called the `transferor') to another person (in this
        section also called the `transferee'); and

   (b)  section 47A applies in relation to the disposal of the asset to deem
        the transferor to have paid a dividend to the transferee; and

   (c)  either:

   (i)  the whole or part of the deemed dividend is included in the assessable
        income of the transferee under section 44; or

   (ii) an amount in respect of the deemed dividend is included in the
        assessable income of another taxpayer under section 458 or 459; and

   (d)  the transferee subsequently disposes of the asset; then, for the
        purposes of this Part, the consideration in respect of the subsequent
        disposal is taken to be reduced by the lesser of:

   (e)  the amount of the deemed dividend; and

   (f)  the amount of any capital gain that, disregarding Division 17, would
        have accrued to the transferor:

   (i)  where subparagraph (a) (i) applies - under this Part; or

   (ii) where subparagraph (a) (ii) applies - under this Part in its
        application for the purpose of calculating the attributable income of
        the transferor in relation to the taxpayer; in respect of the disposal
        referred to in subparagraph (a) (i) or (ii) if the consideration in
        respect of the disposal had been equal to the market value of the
        asset at the time of that disposal.".