Guide to completing Schedule 25A 2011

Item 12 - capital gains/capital losses

Item 12 deals with any capital gains or loss made by you, an Australian resident company, where certain capital gains tax events happen to interests held in a foreign company.

Under Subdivision 768-G of the ITAA 1997, the extent of the reduction is determined by calculating the percentage of the foreign company's assets that were used in the underlying active business. The subdivision applies to disposals occurring on or after 1 April 2004.

You need to have held a direct voting percentage of 10% or more in the foreign company for a continuous period of at least 12 months in the two years before the capital gains tax event.

If a capital gain was reduced in accordance with Subdivision 768-G write the amount of the reduction at item 12a in box L.

If a capital loss is reduced in accordance with Subdivision 768-G write the amount of the capital loss that may be used or carried forward at item 12b in box G.

Sections within Complete section B

• Item 9 - controlled foreign companies and controlled foreign trusts
• Item 10 - attributable income
• Item 11 - foreign non-assessable non-exempt income
• Item 12 - capital gains/capital losses
• Item 13 - transfers from unlisted to listed countries
• Item 14 - transfers to non-resident trust estate
• Item 15 - beneficiary of a non-resident trust estate
• Item 16 - interest in a non-resident trust estate
• Item 17 - non-resident trusts discretionary
• Item 18 - control of a non-resident trust