Capital gains and losses taken into account in working out attributable income for a CFC are those arising on the disposal of assets other than CGT assets having the necessary connection with Australia.
A capital gain or loss on the disposal of a CGT asset having the necessary connection with Australia will be taken into account in working out the actual assessable income of the CFC as a non-resident taxpayer and is therefore excluded from the calculation of the CFC's attributable income. Note: This exclusion applies even if the relevant asset is not subject to capital gains tax (CGT) because it was acquired before 20 September 1985.