TD 2006/71A - Addendum
Income tax: capital gains: small business concessions: is the part of a payment which is a small business 50% reduction amount a non-assessable part under CGT event E4 in section 104-70 of the Income Tax Assessment Act 1997?
Please note that the PDF version is the authorised version of this ruling.View the consolidated version for this notice.
This Addendum amends Taxation Determination TD 2006/71 in minor respects to reflect amendments to the law that replaced the 50% controlling individual test with the 20% significant individual test and modified the basic conditions.
- · Tax Laws Amendment (2006 Measures No. 7) Act 2007 replaced the 50% controlling individual test with a 20% significant individual test (sections 152-50 to 152-75 of the Income Tax Assessment Act 1997 (ITAA 1997) and modified the additional basic conditions in subsection 152-10(2) of the ITAA 1997.
Omit 'controlling individuals'; substitute 'significant individuals'.
Insert after the paragraph:
4A. The amendments applied to this consolidated Determination apply to CGT events happening in the 2006-07 income year or later income years.
Omit the paragraph (including note); substitute:
9. The small business 50% reduction may apply to the CGT event E4 capital gain if the basic conditions in Subdivision 152-A are satisfied. In particular, paragraph 152-10(1)(a) is satisfied as CGT event E4 happens in relation to the unit in the trust. The maximum net asset value test, the active asset test (incorporating the 80% test) and the additional basic conditions (concession stakeholder tests) in subsection 152-10(2) must also be satisfied.
9A. CGT event E4 does not happen to payments made to certain beneficiaries: see Taxation Determination TD 2003/28.
Omit the heading; substitute:
Commissioner of Taxation
29 October 2008