CGT Determination Number 36

TD 36

Capital Gains:When is a renewal of a statutory licence "wholly or principally attributable to" the taxpayer's ownership of the original licence?

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FOI status:

1. A further requirement for roll-over relief to be available under section 160ZZPE is that the renewal of a statutory licence is 'wholly or principally attributable to' the ownership of the original licence.

2. This requirement will be satisfied if the taxpayer's ownership of the original licence was the sole or primary reason for being granted the fresh licence.

Example:

If the fisherman in the example referred to in CGT 35 acquired his fresh permit at an auction, where attendance was restricted to persons who already own fishing permits, the acquisition would not be considered to be wholly or principally attributable to his ownership of the existing permit.

Although the ownership of the original permit was relevant because it allowed him to attend the auction, the primary reason for receiving the fresh permit was the amount of the fisherman's bid.

Commissioner of Taxation
19 December 1991

References

ATO references:
NO N.O.91/9143-7

Related Rulings/Determinations:

CGT34, now TD 34
CGT35, now TD 35
CGT37, now TD 37

Subject References:
Statutory licences

Legislative References:
160ZZPE