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

2   CGT (new Parts 3-1, 3-3 and 3-5)

3   Consequential amendment of the Income Tax Assessment Act 1936

446   Subsection 406(2)

Repeal the subsection, substitute:

(2) For the purposes of applying this Act in calculating the attributable income of the eligible CFC, a commencing day asset of the eligible CFC is a CGT asset (other than one having the necessary connection with Australia) owned by the eligible CFC at the end of its commencing day.

(3) In deciding whether a CGT asset has the necessary connection with Australia, disregard the residency assumption in applying category 8 of the table in section 136-25 of the Income Tax Assessment Act 1997.

Note: The heading to section 406 is replaced by the heading "Meaning of commencing day and commencing day asset".