Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p78
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 78/95)
Character Range: 5749310–5752088

of any one of those assets is equal to:

Division 620—Assets of wound‑up corporation passing to corporation with not significantly different ownership

Table of Subdivisions
620‑A Corporations covered by Subdivision 124‑I

Subdivision 620‑A—Corporations covered by Subdivision 124‑I

Guide to Subdivision 620‑A

620‑5  What this Subdivision is about
      There are tax‑neutral consequences of a body, that is incorporated under one law and ceases to exist, disposing of an asset to a company incorporated under another law, if the ownership of the company is not significantly different from the ownership of the body.

Table of sections

Application and object of this Subdivision
620‑10 Application
620‑15 Object

CGT consequences
620‑20 Disregard body's capital gains and losses from CGT assets
620‑25 Cost base and pre‑CGT status of CGT asset for company

Consequences for depreciating assets
620‑30 Roll‑over relief for balancing adjustment events

Consequences for trading stock
620‑40 Body taken to have sold trading stock to company

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

Application and object of this Subdivision

620‑10  Application
  This Subdivision applies to a body that is incorporated under one law and ceases to exist, and to a company incorporated under another law, if section 124‑525 applies in relation to the body and the company.
Note: That section applies if the ownership of the company is not significantly different from the ownership of the body and rights relating to the body.

620‑15  Object
  The object of this Subdivision is to ensure tax‑neutral consequences when the body ceases to hold an asset and also if the asset becomes held by the company.

CGT consequences

620‑20  Disregard body's capital gains and losses from CGT assets
 (1) This section applies if:
 (a) the body *disposes of a *CGT asset to the company because the body ceases to exist; or
 (b) another *CGT event happens to a CGT asset of the body because the body ceases to exist.
 (2) A *capital gain or a *capital loss the body makes from the *CGT asset is disregarded.

620‑25  Cost base and pre‑CGT status of CGT asset for company
 (1) This section applies to a *CGT asset if the body *disposes of it to the company because the body ceases to exist.
 (2) The first element of the *CGT asset's *cost base for the company is equal to the asset's cost base for the body in connection with the *disposal.
 (3) The first element of the *CGT asset's *reduced cost 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