Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)

Schedule 1   Denial of certain capital losses

Part 2   General on-going rollover etc. scheme amendments

Income Tax Assessment Act 1936

7   After subsection 177C(2)

Insert:

(2A) A reference in this Part to the obtaining by a taxpayer of a tax benefit in connection with a scheme is to be read as not including a reference to:

(a) the assessable income of the taxpayer of a year of income not including an amount that would have been included, or might reasonably be expected to have been included, in the assessable income of the taxpayer of that year of income if the scheme had not been entered into or carried out where:

(i) the non-inclusion of the amount in the assessable income of the taxpayer is attributable to the making of an agreement under section 160ZP or an election under section 160ZZO; and

(ii) the scheme consisted solely of the making of the agreement or election; or

(b) a capital loss being incurred by the taxpayer during a year of income the whole or part of which would not have been, or might reasonably be expected not to have been, incurred by the taxpayer during the year of income if the scheme had not been entered into or carried out where:

(i) the incurring of the capital loss by the taxpayer is attributable to the making of an agreement under section 160ZP or an election under section 160ZZO; and

(ii) the scheme consisted solely of the making of the agreement or election.