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) ).