Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 18/35)
Character Range: 3254770–3257484

Act 1936 are also relevant: see section 170‑225 of the Income Tax (Transitional Provisions) Act 1997.

Subdivision 170‑D—Transactions by a company that is a member of a linked group

Guide to Subdivision 170‑D

170‑250  What this Subdivision is about
      This Subdivision provides that there is a deferral of a *capital loss or deduction if a company (the originating company) that is a member of a *linked group disposes of a *CGT asset to, or creates a CGT asset in, another entity that:

                (a) is a company that is also a member of the linked group; or
                (b) is a connected entity of the originating company or an *associate of such a connected entity;
      and the disposal or creation of the asset would have resulted in the originating company making a capital loss or becoming entitled to a deduction.

Table of sections

Operative provisions
170‑255 Application of Subdivision
170‑260 Linked group
170‑265 Connected entity
170‑270 Immediate consequences for originating company
170‑275 Subsequent consequences for originating company
170‑280 What happens if certain events happen in respect of the asset

Operative provisions

170‑255  Application of Subdivision
 (1) This Subdivision applies if:
 (a) an event (the deferral event) happens involving a company (the originating company) and another entity; and
 (b) one or more of the following apply:
 (i) the deferral event is a *CGT event that would have resulted in the originating company making a *capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision);
 (ii) the deferral event would have resulted in the originating company becoming entitled to a deduction in respect of the disposal of a CGT asset or of an interest in a CGT asset;
 (iii) if the originating company is a partner in a partnership—the deferral event would have resulted in the partnership becoming entitled to a deduction in respect of the disposal of a CGT asset or of an interest in a CGT asset; and
 (c) if subparagraph (b)(i) applies—the CGT event is one of the following:
 (i) CGT events A1 and B1 (a disposal case);
 (ii) CGT events D1, D2, D3 and F1 (a creation case); and
Note: The full list of CGT events is in section 104‑5.
 (d) one of the following applies:
 (i) the originating company is an Australian resident at the time of the deferral event;
 (ii) if the deferral event is a CGT event D1—the *CGT asset that is the subject of the creation of the contractual or other rights is *taxable Australian property;
 (iii) if the deferral event is a CGT event A1, B1 or F1—the asset or the subject of the lease, as the case may be, was *taxable Australian property immediately