Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p27
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 27/40)
Character Range: 100187–102854

(a) there is a roll‑over under Subdivision 126‑B for a *CGT event (the roll‑over event) that happens in relation to a *CGT asset (the roll‑over asset) involving 2 companies that are members of the same *wholly‑owned group; and

 (b) the company (the recipient company) that owns the roll‑over asset just after the roll‑over stops being a 100% subsidiary of a company in the group in the circumstances set out in subsection (2) or (3); and

 (c) at the time of the roll‑over, the recipient company was a *100% subsidiary of:

 (i) the other company involved in the roll‑over event (the originating company); or

 (ii) another member of the same *wholly‑owned group.

Note: If the roll‑over was under section 160ZZO of the Income Tax Assessment Act 1936, CGT event J1 does not happen if there would not have been a deemed disposal and re‑acquisition under that Act: see section 104‑175 of the Income Tax (Transitional Provisions) Act 1997.

 (2) This condition applies if there has been only one roll‑over within the *wholly‑owned group under Subdivision 126‑B involving the roll‑over asset.

  The recipient company must stop, at a time (the break‑up time) when it still owns the roll‑over asset, being a *100% subsidiary of a member of the group (the ultimate holding company) that is not a 100% subsidiary of any other member of the group at the time of the roll‑over event.

 (3) This condition applies if the roll‑over event was the last in a series of *CGT events involving the roll‑over asset and there was a roll‑over within the *wholly‑owned group under Subdivision 126‑B for all the events.

  The recipient company must stop, at a time (also the break‑up time) when it still owns the roll‑over asset, being a *100% subsidiary of another member of the group (also the ultimate holding company) that was not a 100% subsidiary of any other member of the group at the time of the first of the events.

 (4) The time of the event is the break‑up time.

 (5) The recipient company makes a capital gain if the roll‑over asset's market value (at the break‑up time) is more than its *cost base. It makes a capital loss if that market value is less than its *reduced cost base.

Exceptions

 (6) CGT event J1 does not happen if the conditions in section 104‑180 are satisfied.

 (7) A *capital gain or *capital loss the recipient company makes is disregarded if the roll‑over asset is taken to have been *acquired by it before 20 September 1985 under Subdivision 126‑B.

Acquisition rule

 (8) The recipient company is taken to have *acquired the roll‑over asset at the break‑up time.

Cost base adjustment

 (9) The first element of the recipient