Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 106.30

Effect of bankruptcy

             (1)  For the purposes of this Part and Part 3-3 (about capital gains and losses) and Subdivision 328-C (What is a small business entity), the vesting of the individual's * CGT assets in the trustee under the Bankruptcy Act 1966 or under a similar foreign law is ignored.

             (2)  This Part, Part 3-3 and Subdivision 328-C apply to an act done in relation to a * CGT asset of an individual in these circumstances as if the act had been done by the individual (instead of by the trustee etc.):

                     (a)  as a result of the bankruptcy of the individual by the Official Trustee in Bankruptcy or a registered trustee, or the holder of a similar office under a * foreign law;

                     (b)  by a trustee under a personal insolvency agreement made under Part X of the Bankruptcy Act 1966 , or under a similar instrument under a foreign law;

                     (c)  by a trustee as a result of an arrangement with creditors under that Act or a foreign law.

Example:    A CGT asset of an individual vests in a trustee because of the bankruptcy of the individual. No CGT event happens as a result of the vesting.

                   The trustee later sells the CGT asset. Any capital gain or loss is made by the individual, not the trustee.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback