Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 316.170

  (1)   This section applies in relation to a * CGT event if:

  (a)   the CGT event happens in relation to an asset that:

  (i)   is a * share or a right to * acquire one or more shares; and

  (ii)   is held by the trustee of the lost policy holders trust on behalf of a beneficiary of the lost policy holders trust; and

  (b)   the CGT event happens because the beneficiary of the lost policy holders trust either:

  (i)   is transferred the asset by the trustee; or

  (ii)   becomes absolutely entitled to the asset.

Consequence for trustee

  (2)   Disregard a * capital gain or * capital loss the trustee makes from the * CGT event.

Consequences for beneficiary

  (3)   The * cost base and * reduced cost base of the asset in the hands of the trustee of the lost policy holders trust just before the * CGT event becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary of the lost policy holders trust.

Note:   Section   316 - 105 affects the cost base of the asset in the hands of the trustee of the lost policy holders trust if the asset is covered by section   316 - 110.

  (4)   The beneficiary of the lost policy holders trust is taken to have * acquired the asset when the trustee acquired it.