Document ID: chunk:federal_register_of_legislation:C2014C00710:clause:2_16:p2
Version: federal_register_of_legislation:C2014C00710
Segment Type: clause
Provision Reference: sch 2 cl 16 (pt 2/3)
Character Range: 48587–51221

base for the company is worked out similarly.
 (4) If the body *acquired the *CGT asset before 20 September 1985, the company is taken to have acquired the CGT asset before that day.

Consequences for depreciating assets

620‑30  Roll‑over relief for balancing adjustment events
 (1) This section applies if:
 (a) there is a *balancing adjustment event because the body disposes of a *depreciating asset in an income year to the company because the body ceases to exist; and
 (b) the disposal involves a *CGT event.
 (2) This Act applies as if:
 (a) there were roll‑over relief under subsection 40‑340(1) for the *balancing adjustment event; and
 (b) the body were the transferor mentioned in that subsection and subsection 328‑243(1A); and
 (c) the company were the transferee mentioned in that subsection and subsection 328‑243(1A).
Note: Some effects of this are as follows:
(a) the balancing adjustment event does not affect the body's assessable income or deductions (see subsection 40‑345(1));
(b) the company can deduct for the decline in value of the asset on the same basis as the body did (see subsection 40‑345(2));
(c) Division 45 (Disposal of leases and leased plant) applies to the company as if it had done the things the body did (see subsection 40‑350(1)).
 (3) Disregard paragraph 328‑243(1A)(c) in determining whether subsection 328‑243(1A) applies.

Consequences for trading stock

620‑40  Body taken to have sold trading stock to company
 (1) This subsection applies to each item of *trading stock that the body disposes of to the company because the body ceases to exist.
 (2) The body is taken to have sold, and the company is taken to have bought, the item (in the ordinary course of *business and dealing with each other at arm's length), at the time of the disposal (or just before that time if the disposal occurred when the body ceased to exist), for:
 (a) the *cost of the item for the body; or
 (b) if the body held the item as *trading stock at the start of the income year, the *value of the item for the body then.
 (3) The company is taken to have held the item as *trading stock when it bought the item.

Consequences for revenue assets

620‑50  Body taken to have sold revenue assets to company

Disposal
 (1) Subsections (2) and (3) apply to a *CGT asset:
 (a) that the body *disposes of to the company because the body ceases to exist; and
 (b) that is a *revenue asset of the body just before the disposal.
Note: Trading stock and depreciating assets are not revenue assets. See section 977‑50.
 (2) The body is taken to have disposed of the *revenue asset to the company for an amount such that