Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/6)
Character Range: 429151–431817

company under Division 7 of Part X of the Income Tax Assessment Act 1936 because (ignoring the residency assumptions in that Division) the roll‑over asset did not have the *necessary connection with Australia; and

 (d) a subsequent *CGT event happens in relation to the roll‑over asset.

 (2) In working out the amount of any *capital gain or *capital loss the recipient company (or a subsequent owner of the roll‑over asset if there is a series of roll‑overs until there is no roll‑over) makes when a subsequent *CGT event happens in relation to the asset, the modifications specified in Division 7 of Part X of the Income Tax Assessment Act 1936 apply.

126‑80  Roll‑over asset is an interest in a CFC or FIF

 (1) This section is relevant only if:

 (a) there is a roll‑over under this Subdivision because of subsection 126‑55(2) (where there is a *capital loss); and

 (b) the roll‑over asset is an interest in a *CFC or *FIF; and

 (c) the *capital proceeds from the trigger event are reduced under section 461 or 613 of the Income Tax Assessment Act 1936.

Note: Sections 461 and 613 of the Income Tax Assessment Act 1936 reduce capital proceeds where the attributed income of a CFC or FIF is not distributed.

 (2) The *cost base and *reduced cost base of the roll‑over asset (in the hands of the recipient company) are increased by that part of the attribution surplus (for the purposes of Part X or Part XI of the Income Tax Assessment Act 1936) as was taken into account for the trigger event under paragraph 461(1)(c) or 613(1)(c) of that Act.

126‑85  Effect of roll‑over on certain liquidations

 (1) A *capital gain or *capital loss a company (the holding company) makes because *shares in its *100% subsidiary are cancelled (an example of *CGT event C2: see section 104‑25) on the liquidation of the subsidiary is reduced if the conditions in subsection (2) are satisfied. The reduction is worked out under subsection (3).

 (2) These conditions must be satisfied:

 (a) there must be a roll‑over under this Subdivision for at least one *CGT asset (the CGT roll‑over asset) being *disposed of by the subsidiary to the holding company in the course of the liquidation of the subsidiary;

 (b) the subsidiary must have acquired each CGT roll‑over asset on or after 20 September 1985;

 (c) the disposals must either:

 (i) be part of the liquidator's final distribution in the course of the liquidation; or

 (ii) have occurred within 18 months of the dissolution of the subsidiary if they are part of an interim distribution in the course of the liquidation;

 (d) the holding company must have beneficially owned all of the shares