Document ID: chunk:federal_register_of_legislation:C2025C00029:section:8:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 8 (pt 2/13)
Character Range: 987165–989877

after the *balancing adjustment event occurred.
Penalty: 30 penalty units.
 (7) The transferee must keep the choice or a copy of it until the end of 5 years after the next *balancing adjustment event occurs for the *depreciating asset.
Penalty: 30 penalty units.

Exception: Subdivision 170‑D applies
 (8) There can be no roll‑over relief if Subdivision 170‑D (about transactions by a company that is a member of a linked group) applies to the disposal of the *depreciating asset or the change in interests in it.

40‑345  What the roll‑over relief is
 (1) Section 40‑285 does not apply to the *balancing adjustment event for the transferor.
 (2) The transferee can deduct the decline in value of the *depreciating asset using the same method and *effective life (or *remaining effective life if that method is the *prime cost method) that the transferor was using.

40‑350  Additional consequences
 (1) For the purposes of Division 45:
 (a) if the transferor, or a partnership of which the transferor was a member, leased the *depreciating asset to another entity for most of the time that the transferor or partnership *held the asset, the transferee is taken also to have done so; and
 (b) if the transferor, or a partnership of which the transferor was a member, leased the asset to another entity for a period on or after 22 February 1999, the transferee is taken also to have done so; and
 (c) if the main *business of the transferor, or a partnership of which the transferor was a member, was to lease assets, the main business of the transferee is taken also to have been to lease assets.
 (2) However, subsection (1) does not apply to roll‑over relief under subsection 40‑340(3) if the sum of the amounts specified in paragraph 45‑5(1)(e) or 45‑10(1)(f), or subsection 45‑5(4) or 45‑10(4), is at least equal to the *market value of the *plant or interest concerned.

40‑360  Notice to allow transferee to work out how this Division applies
 (1) This section applies if there is roll‑over relief because of subsection 40‑340(1).
 (2) The transferor must give the transferee a notice containing enough information about the transferor's *holding of the property for the transferee to work out how this Division applies to the transferee's holding of the *depreciating asset.
 (3) The transferor must give the notice within 6 months after the end of the transferee's income year in which the *balancing adjustment event occurred, or within a longer period allowed by the Commissioner.
 (4) The transferee must keep the notice until the end of 5 years after the earlier of these events:
 (a) the transferee disposes of the property;
 (b) the property is lost or destroyed.
Penalty: 30 penalty units.

40‑362