Draft Taxation Determination
TD 1999/D77
Income tax: capital gains: if a court order in the context of Subdivision 126-A of the Income Tax Assessment Act 1997 varies or sets aside an earlier order of the court, does the later court order operate retrospectively or prospectively?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 1999/51.
FOI status:
Not previously released in draft formPreamble
Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. The answer depends on the terms of the court order. In the absence of clear words to the contrary, a later court order should be given only prospective application.
- (a)
- a CGT event involving an individual and their spouse happens because of a court order under the Family Law Act 1975;
- (b)
- roll-over is provided under section 126-5 or 126-15 of the Income Tax Assessment Act 1997 (ITAA 1997); and
- (c)
- a later court order varies or sets aside the original court order;
the later court order operates only prospectively (unless the order otherwise directs).
3. If a later court order sets aside an earlier court order and, as a result, there is a re-transfer of a CGT asset, there is roll-over under section 126-5 or 126-15 of the ITAA 1997 for the re-transfer.
Your comments
4. We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.
Comments by Date: | 15 September 1999 |
Contact officer details have been removed following publication of the final ruling. |
Commissioner of Taxation
18 August 1999
References
ATO references:
NO 99/19509-6
BO CGT marriage breakdown summit 1999
Subject References:
CGT asset
CGT event
court order
re-transfer
roll-over
spouse
Legislative References:
ITAA 1997 126-5
ITAA 1997 126-15
ITAA 1997 Subdiv 126-A
FLA 1975
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