Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 360.50

Modified CGT treatment

             (1)  This section applies if the issuing of a * share to an entity gives rise to an entitlement to a * tax offset under this Subdivision.

Note:          This section applies to any share that gives rise to the entitlement, regardless of whether subsection 360-25(2) reduces the amount of the tax offset.

             (2)  The entity is taken to hold the * share on capital account.

             (3)  The entity must disregard any * capital loss it makes from any * CGT event happening in relation to the * share if:

                     (a)  the entity has continuously held the share since its issue; and

                     (b)  the CGT event happens before the tenth anniversary of the issue of the share.

             (4)  The entity may disregard any * capital gain it makes from any * CGT event happening in relation to the * share if:

                     (a)  the entity has continuously held the share since its issue; and

                     (b)  the CGT event happens on or after the first anniversary, but before the tenth anniversary, of the issue of the share.

             (5)  If the entity has continuously held the * share since its issue, the * first element of its * cost base and * reduced cost base becomes, on the tenth anniversary of its issue, its * market value on that anniversary.



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