Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p56
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 56/58)
Character Range: 2442202–2444999

franking debit arises in relation to the transfer
Subdivision 197‑C—Consequence of transfer: tainting of share capital account
197‑50 The share capital account becomes tainted (if it is not already tainted)
197‑55 Choosing to untaint a tainted share capital account
197‑60 Choosing to untaint—liability to untainting tax
197‑65 Choosing to untaint—further franking debits may arise
197‑70 Due date for payment of untainting tax
197‑75 General interest charge for late payment of untainting tax
197‑80 Notice of liability to pay untainting tax
197‑85 Evidentiary effect of notice of liability to pay untainting tax

Chapter 3—Specialist liability rules

Part 3‑3—Capital gains and losses: special topics

Division 122—Roll‑over for the disposal of assets to, or the creation of assets in, a wholly‑owned company

Table of Subdivisions
 Guide to Division 122
122‑A Disposal or creation of assets by an individual or trustee to a wholly‑owned company
122‑B Disposal or creation of assets by partners to a wholly‑owned company

Guide to Division 122

122‑1  What this Division is about

      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.

Subdivision 122‑A—Disposal or creation of assets by an individual or trustee to a wholly‑owned company

Guide to Subdivision 122‑A

122‑5  What this Subdivision is about
      This Subdivision sets out when you can obtain a roll‑over if you transfer a CGT asset, or all the assets of a business, to a company. It also deals with the creation of a CGT asset in a company. There are consequences for the company also.

Table of sections

When is a roll‑over available
122‑15 Disposal or creation of assets—wholly‑owned company
122‑20 What you receive for the trigger event
122‑25 Other requirements to be satisfied
122‑35 What if the company undertakes to discharge a liability (disposal case)
122‑37 Rules for working out what a liability in respect of an asset is

Replacement‑asset roll‑over if you dispose of a CGT asset
122‑40 Disposal of a CGT asset

Replacement‑asset roll‑over if you dispose of all the assets of a business
122‑45 Disposal of all the assets of a business
122‑50 All assets acquired on or after 20 September 1985
122‑55 All assets acquired before 20 September 1985
122‑60 Assets acquired before and after 20 September 1985

Replacement‑asset roll‑over for a creation case
122‑65 Creation of asset

Same‑asset roll‑over consequences for the company