Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/3)
Character Range: 418000–420738

2                    Trustee               (a) an interest or unit in the trust; or

                                           (b) a loan to the trustee; or

                                           (c) an indirect interest (through one or more interposed companies or trusts) in an interest or unit in the trust or in a loan to the trustee

Example: An individual owns all the shares in a company. The company owns land. The individual's marriage breaks down. The Family Court orders that the company transfer the land it owns to the individual's spouse. The individual later sells the shares.

 (3) The *cost base and *reduced cost base of the other asset are reduced by an amount that reasonably reflects the fall in its market value because of the trigger event. The reduction occurs at the time of the trigger event.

 (4) If the entity owning the other asset is also the transferee, the *cost base and *reduced cost base of the other asset are then increased by any amount that is included in the entity's assessable income for any income year because of the trigger event.

126‑20  Subsequent CGT event happening to roll‑over asset where transferor was a CFC or a non‑resident trust

 (1) This section applies if:

 (a) there is a roll‑over for the trigger event under section 126‑15; and

 (b) the transferor was:

 (i) a *CFC; or

 (ii) a trustee of a trust that is a non‑resident trust estate within the meaning of section 102AAB of the Income Tax Assessment Act 1936 for the income year of the trigger event; and

 (c) section 126‑15 is relevant to:

 (i) the calculation of the *attributable income of the CFC under Division 7 of Part X of the Income Tax Assessment Act 1936; or

 (ii) the calculation of the attributable income of the trust under Subdivision D of Division 6AAA of Part III of that Act;

  because (ignoring the residency assumptions in that Division or Subdivision) 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 transferee (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, or Subdivision D of Division 6AAA of Part III, of the Income Tax Assessment Act 1936 apply.

Subdivision 126‑B—Companies in the same wholly‑owned group

Guide to Subdivision 126‑B

126‑40  What this Subdivision is about

      This Subdivision sets out when a company can obtain a roll‑over if it transfers a CGT asset to, or creates a CGT asset in,