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End of attention
In determining whether an asset is a CGT asset having the necessary connection with Australia, the assumption that the CFC is a resident of Australia is ignored. In almost all cases, however, the residency assumption will make no difference.
Broadly, a CGT asset having the necessary connection with Australia is:
- land or buildings in Australia
- assets used in carrying on business through a permanent establishment in Australia
- a share, or an interest in a share, in a company which was a resident private company in the income year in which the disposal took place
- a share, or an interest in a share, of a company which was an Australian resident and not a private company and at any time in the preceding five years a taxpayer or an associate, alone or together, owned 10% of the issued capital of the company
- an interest in an Australian resident trust
- a unit in a unit trust which was an Australian resident where, at any time in the preceding five years, a taxpayer or an associate, alone or together, owned 10% of the units in the unit trust
- an option or right to acquire an asset referred to above
- certain assets that have been transferred under the rollover provisions
- certain rights that have a connection with Australia.
The specific list of CGT assets having the necessary connection with Australia is set out in section 136-25 of the ITAA 1997.
Last modified: 05 Dec 2006QC 18000