27No assessable income to arise from transfers between restructuring bodies

#### 27 No assessable income to arise from transfers between restructuring bodies (1) For the purposes of the 1936 Tax Act and the 1997 Tax Act, if an asset or liability of a restructuring body becomes an asset or liability of another restructuring body as a result of an exempt transfer, then no amount is to be included in the assessable income of the transferor or transferee because of the transfer. (2) To the extent that an exempt transfer involves a CGT event, Subdivision 126‑B of the 1997 Tax Act is to be applied on the basis that: (a) subsection 126‑50(4) of that Act were omitted; and (b) in deciding whether the condition in paragraph 126‑55(1)(a) of that Act is met, it is to be assumed that the transferor was not, at any relevant time, exempt from income tax; and (c) the condition in paragraph 126‑55(1)(b) of that Act were taken to be met. > Note: The broad effect of subsection (2) is that the transfer will qualify for roll‑over concessions under the rules that apply to certain transactions within a wholly‑owned group. (3) To the extent that an exempt transfer involves a disposal of property for the purposes of Subdivision 41‑A of the 1997 Tax Act, that Subdivision is to be applied on the basis that: (a) in deciding whether the condition in paragraph 41‑20(1)(a) of that Act is met, it is to be assumed that the transferor was not, at any relevant time, exempt from income tax; and (b) Subdivision 126‑B of that Act applies, for the purposes of Subdivision 41‑A of that Act, with the modifications set out in subsection (2) of this section; and (c) the transferor and transferee had made a joint election under section 41‑55 of that Act. > Note: The broad effect of subsection (3) is that the transfer will qualify for roll‑over concessions under the provisions of the 1997 Tax Act that deal with capital allowances. (4) In this section: > exempt transfer means either of the following that is certified under section 36: (a) a transfer of an asset or liability between restructuring bodies; (b) the operation of Division 3 in respect of an asset or liability or contract.