Document ID: chunk:federal_register_of_legislation:F2022C01160:reg:20:p1
Version: federal_register_of_legislation:F2022C01160
Segment Type: reg
Provision Reference: reg 20 (pt 1/2)
Character Range: 51223–53754

20  Capital gains regarded as subject to tax
 (1) For subsection 324(2) of the Act, gains or profits, or other amounts, of a capital nature derived by an entity that:
 (a) are not subject to tax in a listed country in a particular tax accounting period; and
 (b) would have been subject to tax in the listed country in the tax accounting period apart from the availability of roll‑over relief;
are to be treated, for the purposes of Part X of the Act, as if they were subject to tax in the listed country in the tax accounting period.
 (2) For paragraph 324(2)(b) of the Act, the feature mentioned in paragraph (1)(b) of this section is specified in relation to the gains or profits.

Meaning of roll‑over relief
 (3) Roll‑over relief is the deferral of tax liability in the tax accounting period under a tax law of the listed country because of a circumstance specified in subsection (4), (6), (7) or (8).
 (4) For the purposes of subsection (3), the circumstance is that an entity:
 (a) is taken to have disposed of all or part of a CGT asset because of an act, transaction or event as a result of which the entity has received an amount of money or a replacement CGT asset:
 (i) by way of compensation for the compulsory acquisition, or for the loss or destruction, of the original CGT asset; or
 (ii) under a policy of insurance against the risk of loss or destruction of the original CGT asset; and
 (b) after receiving an amount of money mentioned in paragraph (a), in order to achieve a deferral of tax liability under the tax law of the listed country, is required:
 (i) to incur expenditure in acquiring a CGT asset in place of the original CGT asset; or
 (ii) to incur expenditure of a capital nature in repairing or restoring the original CGT asset.
 (5) A compulsory acquisition, of a CGT asset, is a compulsory acquisition of that asset by:
 (a) the government of a country, whether a federal, State or municipal government (however described); or
 (b) an authority of such a government.
 (6) For the purposes of subsection (3), the circumstance is that a company disposes of a CGT asset to another company, and the transferee is a member of the same wholly‑owned group (within the meaning of the Income Tax Assessment Act 1997) as the transferor.
 (7) For the purposes of subsection (3), the circumstance is that:
 (a) a company redeems or cancels all the shares of a particular class in the company; and
 (b) an entity holds shares of that class in the company; and
 (c) the company issues to the entity other shares