Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/6)
Character Range: 426543–429403

Applicable amount
D1             the *incidental costs the originating company incurred that relate to the trigger event
D2             the expenditure the originating company incurred to grant the option
D3             the expenditure the originating company incurred to grant the right
F1             the expenditure the originating company incurred on the grant, renewal or extension of the lease

  The expenditure can include giving property: see section 103‑5.

Note: CGT event J1 may occur if the recipient company stops being a member of the wholly‑owned group while still owning the roll‑over asset: see section 104‑175.

126‑65  Choosing for no roll‑over in loss situation

 (1) The originating company and recipient company can choose not to obtain a roll‑over in the circumstances set out in this section.

Note: Section 103‑25 sets out when the choice must be made.

 (2) The trigger event must have resulted (apart from the roll‑over) in the originating company making a *capital loss.

 (3) The originating company and recipient company must intend that, before the end of the income year of the originating company after the one in which the trigger event happened:

 (a) they will no longer be members of the same *wholly‑owned group; and

 (b) the originating company and companies that are members of its wholly‑owned group at that time will own less than 50% of the *shares in the recipient company.

126‑70  Loss disregarded if intention not realised

 (1) The originating company's *capital loss is disregarded if the condition in subsection (2) or (3) is met despite a choice being made under section 126‑65.

 (2) The intention of the originating company and recipient company set out in subsection 126‑65(3) must not be realised.

 (3) After that intention is realised but, at a time (the disqualifying time) within 4 years after the time of the trigger event, the roll‑over asset must be owned by:

 (a) the originating company; or

 (b) a company that is a member of the originating company's *wholly‑owned group at the disqualifying time; or

 (c) a company at least 50% of whose *shares are owned by the originating company and companies that are members of the originating company's wholly‑owned group at the disqualifying time.

126‑75  Originating company is a CFC

 (1) This section applies if:

 (a) there is a roll‑over for the trigger event under this Subdivision; and

 (b) the originating company was a *CFC at the time of the trigger event; and

 (c) this Subdivision is relevant to the calculation of the *attributable income of the originating 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