Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-95 - VALUE SHIFTING  

Division 725 - Direct value shifting affecting interests in companies and trusts  

Subdivision 725-D - Consequences for down interest or up interest as CGT asset  

SECTION 725-245   725-245   Table of taxing events generating a gain for interests as CGT assets  


To the extent that the * direct value shift is from * down interests of which you are an * affected owner, and that are specified in an item in the table, to * up interests specified in that item, those up interests give rise to a taxing event generating a gain for you on each of those down interests. The gain is worked out under section 725-365 .


Taxing events generating a gain for down interests as CGT assets
Item Down interests: Up interests:
1 *down interests that:

(a) are owned by you ; and

(b) are neither your *revenue assets nor your *trading stock ; and

(c) have *pre-shift gains ; and

(d) are *post-CGT assets
*up interests owned by you that:

(a) are neither your revenue assets nor your trading stock ; and

(b) are *pre-CGT assets
2 *down interests that:

(a) are owned by you ; and

(b) are neither your *revenue assets nor your *trading stock ; and

(c) have *pre-shift gains
*up interests owned by you that are your trading stock or revenue assets
3 *down interests owned by you that:

(a) are of the one kind (either your *trading stock or your *revenue assets ); and

(b) have *pre-shift gains
*up interests owned by you that:

(a) are of the other kind (either your revenue assets or your trading stock ); or

(b) are neither your *revenue assets nor your *trading stock
4 *down interests owned by you that have *pre-shift gains up interests owned by other *affected owners

Note:

If there is a taxing event generating a gain on a down interest, CGT event K8 happens: see section 104-250 . However, a capital gain you make under CGT event K8 is disregarded if the down interest:

  • is your trading stock (see section 118-25 ); or
  • is a pre-CGT asset (see subsection 104-250(5) ).

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