Taxation Determination
TD 93/44A - Addendum
Income tax: capital gains: what is the amount of the consideration in respect of the disposal of an asset by a taxpayer where consideration is actually received but an amount is later paid out by way of damages?
-
Please note that the PDF version is the authorised version of this ruling.View the consolidated version for this notice.
FOI status:
may be releasedADDENDUM
The Income Tax Assessment Act 1997 now allows capital proceeds to be reduced by any amount repaid, to the extent that a deduction is not allowable for the repayment (section 116-50). This Addendum reflects this change in the law by specifying that this Determination does not apply to CGT events that happen after the beginning of the 1998-99 income year.
This Addendum amends Taxation Determination TD 93/44 as follows:
-
1. After paragraph 1 insert:
- '2. This Determination does not apply to the calculation of capital proceeds from CGT events under the Income Tax Assessment Act 1997 that happen after the beginning of the 1998-99 income year. However, it continues to apply to disposals of assets under the Income Tax Assessment Act 1936 occurring before the beginning of the 1998-99 income year.'
Commissioner of Taxation
1 July 1998
References
ATO references:
NO NAT 98/561-9
BO BRI CG ITD 98