Taxation Determination TD 7

TD 7A - Addendum

Capital gains: what are the CGT consequences of subdividing pre-CGT land?

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FOI status:

May be released

ADDENDUM

This Addendum amends Tax Determination TD 7 from the beginning of the 1998-99 income year, as follows, to change section references and terms used in this Determination to those used in the Income Tax Assessment Act 1997 (ITAA97). There is no change in the views expressed in TD 7.

1. Paragraph 1

Omit 'there is no change in ownership.'; substitute 'no CGT event has happened. The subdividing of the land is not itself a CGT event: section 112-25 of the ITAA97.'.

2. Paragraph 2

Omit 'sub-section 160P(6)'; substitute 'subsections 108-70(2) and 108-70(3)'.

3. Note

Omit 'as ordinary income'; substitute 'as ordinary or statutory income under sections 6-5 or 6-10'.

Commissioner of Taxation
10 March 1999

References

ATO references:
NO NAT 98/12257-6

Related Rulings/Determinations:

TD 7

Legislative References:
ITAA97 6-5
ITAA97 6-10
ITAA97 108-70(2)
ITAA97 108-70(3)
ITAA97 112-25