Taxation Laws Amendment Act (No. 1) 1995 (120 of 1995)

Schedule 1   VARIOUS AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 9   CAPITAL GAINS TAX

60   After subsection 160M(6B)

Insert:

"(6BA) Subject to this Part (other than subsection (7) of this section), subsection (6BB) applies if:

(a) a person creates an asset that is not a form of corporeal property; and

(b) on its creation, the asset is held by the person in the person's capacity as trustee of a trust estate; and

(c) at the time of that creation, no beneficial interest in the asset is held by a person in the person's capacity as a beneficiary of the trust estate; and

(d) the person has received consideration in respect of the creation of the asset.

"(6BB) If this subsection applies:

(a) the person creating the asset is taken to have acquired, and to have commenced to own, the asset at the time applicable under subparagraph 160U(6)(a)(ii) or (b)(iv); and

(b) that person is taken not to have paid or given any consideration, or incurred any costs or expenditure, referred to in paragraphs 160ZH(1)(a) to (d) (inclusive), (2)(a) to (d) (inclusive) and (3)(a) to (d) (inclusive) in respect of the creation of the asset; and

(c) that person is taken to have disposed of the asset at the time applicable under subparagraph 160U(6)(a)(iii) or (b)(iv) and to have immediately re-acquired it; and

(d) the person is taken to have received in respect of the disposal of the asset, and to have paid in respect of the re-acquisition, the market value of the asset at the time of the disposal.".