Commonwealth Consolidated Acts

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

INCOME TAX ASSESSMENT ACT 1997 - SECT 855.32

Disregard market value of duplicated non-TARP assets

             (1)  The purpose of this section is to prevent double counting of the * market value of the assets of a corporate group that:

                     (a)  are not * taxable Australian real property; and

                     (b)  are created under * arrangements under which corresponding liabilities are created in other members of the group.

             (2)  For the purposes of subsections 855-30(2) and (4), subsection (4) of this section applies to an asset that is not * taxable Australian real property if:

                     (a)  the parties to an * arrangement included the 2 entities referred to in subsection (3); and

                     (b)  an effect of the arrangement was to create, before the * CGT event happened:

                              (i)  the asset as an asset of one of those 2 parties; and

                             (ii)  a corresponding liability of the other (the other party ).

             (3)  The 2 entities are either:

                     (a)  the first entity and the other entity (see subsection 855-30(3)), if table item 2 in subsection 855-30(4) applies to those entities; or

                     (b)  both:

                              (i)  that first entity or that other entity; and

                             (ii)  an entity that is a first entity or other entity for the purposes of a related application of subsection 855-30(3) and table item 2 in subsection 855-30(4).

             (4)  Disregard:

                     (a)  if the other party is the test entity (see subsection 855-30(2))--the asset's * market value; or

                     (b)  otherwise--the percentage of the asset's market value equal to the percentage that is the test entity's * total participation interest in the other party.

Example:    The test entity loans money to its wholly-owned subsidiary. The market value of the loan asset created as an asset of the test entity is disregarded for the purposes of subsection 855-30(2).



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback