Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1993No. 17, 1993 - SECT 54

54. After section 160ZZO of the Principal Act the following section is
inserted: Break-up of company group after section 160ZZO application (Deemed
disposal and re-acquisition on break-up of group)

"160ZZOA.(1) If:

   (a)  a group roll-over disposal of an asset to a company takes place; and

   (b)  the company is not the ultimate holding company in relation to the
        disposal; and

   (c)  the company ceases, at a particular time ('the break-up time') when it
        has not disposed of the asset, to be a subsidiary of the ultimate
        holding company in relation to:

        (i)    if subparagraph (ii) does not apply-the disposal; or

        (ii)   if the disposal is the second or a later disposal in a series
               of group roll-over disposals-the first of the disposals in the
               series; (whether the ceasing is because of the dissolution of
               the ultimate holding company or any other company or for any
               other reason); then the company is taken, for the purposes of
               this Part:

   (d)  to have disposed of the asset at the break-up time for a consideration
        equal to the asset's market value at that time; and

   (e)  to have immediately re-acquired the asset for that consideration.
        (Meaning of expressions)

"(2) For the purposes of this section:

   (a)  a 'group roll-over disposal' of an asset takes place if section 160ZZO
        applies to the disposal of the asset; and

   (b)  a 'series of group roll-over disposals' of an asset takes place if 2
        or more group roll-over disposals of the asset take place without an
        intervening disposal that is not a group roll-over disposal occurring,
        but once this section has applied, any disposal before the break-up
        time does not form part of a series for the purposes of any later
        application of this section; and

   (c)  the expression 'subsidiary' has the same meaning as in section 160ZZO;
        and

   (d)  a company ('the first company') is the 'ultimate holding company' in
        relation to a group roll-over disposal of an asset if:

        (i)    the first company is not a subsidiary of another company at the
               time of the disposal; and

        (ii)   the disposal is to a subsidiary of the first company or to the
               first company itself.".