Reasons for Decision
an intangible CGT asset owned by a taxpayer ceases to exist during the FSR transition period; 2. the asset ceases to exist because of the termination of a contract; 3. the termination is directly connected with the taxpayer choosing a new owner to conduct the taxpayer's business in relation with Chapter 7 of the Corporations Act 2001 (as amended by the Financial Services Reform Act 2001 ) beginning to apply to the taxpayer; 4. the new owner acquires an intangible CGT asset(s) by entering into contract(s) in substitution (wholly or partly) for the contract(s) that were terminated; and 5. the further conditions under sub-section 124-910(2) or subsection 124-910(3) of the ITAA 1997 are satisfied. In this case, subsection 124-910(3) of the ITAA 1997 contains the relevant conditions that need to be satisfied: • the new owner is a company; • all of the membership interests in the company are owned by the original owner; • the new owner acquires the AFS licence; and • the original owner becomes an authorised representative, an employee, or a director of the new owner.