INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17B - Disposal of small business assets: proceeds used for retirement  

Subdivision C - Taxpayers that are private companies or trusts  

SECTION 160ZZPZK   EXEMPTION REDUCED IF CONTROLLING INDIVIDUAL DID NOT CONTROL TAXPAYER THROUGHOUT TAXPAYER'S OWNERSHIP OF ASSET  

160ZZPZK(1)   [Calculation of reduction amount]  

If:


(a) immediately before the disposal of the asset concerned, there was only one controlling individual of the taxpayer; and


(b) at any time during the period (the ownership period ) from the later of:


(i) the start of the 1992-93 year of income; and

(ii) the time when the taxpayer acquired the asset;
until immediately before the disposal, the individual was not the controlling individual of the taxpayer;

the asset's CGT exempt amount is reduced by the following amount:


Asset's CGT exempt amount ×   Part of ownership period when
  individual was not controlling
                individual of the taxpayer                
      Ownership period

160ZZPZK(2)   [Where lesser amount]  

However, if, disregarding subparagraph (1)(b)(i), the asset's CGT exempt amount would be reduced by a lesser amount, the asset's CGT exempt amount is instead reduced by that lesser amount.

160ZZPZK(3)   If there are 2 controlling individuals.  

If, immediately before the disposal, there were 2 controlling individuals of the taxpayer, the asset's CGT exempt amount is reduced by the sum of the amounts, worked out for each controlling individual, using the formula:


Individual's exemption percentage
(see paragraph 160ZZPZI(4)(d))  
× Reduction required under subsection
  (1) or (2) if the individual were the
    only controlling individual


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.