Tax Law Improvement Act (No. 1) 1998 (46 of 1998)

Schedule 1   Amendment of the Income Tax Assessment Act 1997

1   Part 3-1 Division 103

Division 103 - General rules

Guide to Division 103

103-1 What this Division is about

This Division sets out some general rules that apply to the provisions dealing with capital gains and capital losses.

Table of sections

Operative provisions

103-5 Giving property as part of a transaction

103-10 Entitlement to receive money or property

103-15 Requirement to pay money or give property

103-20 Amounts to be expressed in Australian currency

103-25 Choices

Operative provisions

103-5 Giving property as part of a transaction

There are a number of provisions in this Part and Part 3-3 that say that a payment, cost or expenditure can include giving property.

To the extent that one does, use the market value of the property in working out the amount of the payment, cost or expenditure.

103-10 Entitlement to receive money or property

(1) This Part and Part 3-3 apply to you as if you had received money or other property if it has been applied for your benefit (including by discharging all or part of a debt you owe) or as you direct.

(2) Those Parts apply to you as if you are entitled to receive money or other property:

(a) if you are entitled to have it so applied; or

(b) if:

(i) you will not receive it until a later time; or

(ii) the money is payable by instalments.

103-15 Requirement to pay money or give property

This Part and Part 3-3 apply to you as if you are required to pay money or give other property even if:

(a) you do not have to pay or give it until a later time; or

(b) the money is payable by instalments.

103-20 Amounts to be expressed in Australian currency

If an amount of money or the market value of other property:

(a) is to be taken into account at a particular time under this Part or Part 3-3; and

(b) is in a foreign currency;

it is to be converted into the equivalent amount of Australian currency at that time.

103-25 Choices

(1) A choice you can make under this Part or Part 3-3 must be made:

(a) by the day you lodge your *income tax return for the income year in which the relevant *CGT event happened; or

(b) within a further time allowed by the Commissioner.

(2) The way you (and any other entity making the choice) prepare your *income tax returns is sufficient evidence of the making of the choice.

(3) However, there are 2 exceptions: see subsections 124-380(5) and 124-465(5). These relate to *replacement-asset roll-over events where there is an interposed company. The company is required to make the choice at an earlier time specified in that subsection.

Note: This section is modified in calculating the attributable income of a CFC: see section 421 of the Income Tax Assessment Act 1936.