Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 149.60

What the evidence must show

          (1A)  To avoid the consequences in section 149-70, the following condition must be complied with.

             (1)  On the basis solely of the evidence given to the Commissioner under subsection 149-55(1), the Commissioner must be satisfied that, or think it reasonable to assume that, at the end of the * test day, * majority underlying interests in the asset were had by * ultimate owners who also had * majority underlying interests in the asset at the end of the starting day. The starting day is:

                     (a)  a day the entity chooses under subsection (2); or

                     (b)  if no day is so chosen--19 September 1985.

             (2)  The day chosen:

                     (a)  must be no earlier than 1 July 1985 and no later than 30 June 1986; and

                     (b)  must be one the choice of which will allow evidence to be given that enables a reasonable approximation of the * ultimate owners who had * underlying interests in the assets of the entity at the end of 19 September 1985.

How unidentified owners are treated

             (3)  So far as the evidence does not show who had * underlying interests in the asset at the end of the * starting day, the evidence must be treated on the assumption that those interests were then had by * ultimate owners who did not have * underlying interests in the asset at the end of the * test day.

New owner standing in the shoes of former owner

             (4)  Subsection (5) affects how the evidence must be treated if an * ultimate owner (the new owner ) has acquired a percentage (the acquired percentage ) of the * underlying interests in the asset because of an event described in column 2 of an item in the table. The former owner is the entity described in column 3 of that item.

 

Events leading to new owner standing in for former owner

Item

For this kind of event:

The former owner is:

1

* CGT event A1 or B1 if there is a roll-over under Subdivision 126-A (about marriage or relationship breakdowns) for the event

the entity that, immediately before the event happened, owned the * CGT asset to which the event relates

2

the death of a person

that person

             (5)  The evidence must be treated on the assumption that the new owner had (in addition to any other * underlying interests), at any time when the former owner had a percentage (the former owner's percentage ) of the * underlying interests in the asset, a percentage of the underlying interests in the asset equal to the acquired percentage, or the former owner's percentage at that time, whichever is the less.

Determining the end of a day

             (6)  For the purposes of this section, the end of a day is determined according to legal time in the place where the records of ownership of shares or other interests in the entity are kept.



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