Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-E - Trusts  

SECTION 104-107F   Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income  

104-107F(1)  
Subsections (2) and (3) apply if:

(a) you start to have a right to receive any money or any property from the trustee of an *AMIT in an income year; and

(b) the right is indefeasible (disregarding section 276-55 ) or is reasonably likely not to be defeated; and

(c) the right is not remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person; and

(d) the right is reasonably attributable to a *CGT asset that is a *membership interest in the AMIT; and

(e) the CGT asset is neither *trading stock nor a *Division 230 financial arrangement; and

(f) as a result of you starting to have the right, the CGT asset ' s *AMIT cost base reduction amount for the income year is increased because of the operation of section 104-107D .

104-107F(2)  
These provisions do not apply to you starting to have the right:

(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), 15-15 and 25-40 (about profit-making undertakings or plans);

(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).

104-107F(3)  
Section 6-10 (about *statutory income) does not apply to you starting to have the right except so far as that section applies in relation to section 102-5 (about net capital gains).