Draft Taxation Determination
TD 1999/D93
Income tax: capital gains: is a court an entity for the purposes of CGT event D1 (about creating contractual or other legal or equitable rights in you) in sections 104-35 and section 109-5 of the Income Tax Assessment Act 1997?
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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 1999/81.
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. |
2. The term 'entity' is defined in section 960-100 of the Income Tax Assessment Act 1997 to mean an individual, a body corporate, a body politic, a partnership, any other unincorporated association or body of persons or a trust.
3. A court is not a body corporate, a body politic, or an individual (see Kizon v. Palmer (1997) 142 ALR 488 at 505). So, a court is not an 'entity' as that term is used in section 104-35 (CGT event D1) and the acquisition rules in section 109-5.
Note
4. The importance of this issue is for the application of the general acquisition rules in Division 109 in Part 3-1. If a court were an entity it could create rights in another entity and that entity would acquire the rights in accordance with subsection 109-5(2) and event number D1.
Your comments
5. 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: | 24 September 1999 |
Contact officer details have been removed following publication of the final ruling. |
Commissioner of Taxation
25 August 1999
References
ATO references:
NO 99/11446-1
BO CGT disposal summit 1999; CPL99/76
Subject References:
asset
CGT asset
acquisition
capital gains
CGT event D1
court
creation of rights
entity
Legislative References:
ITAA 1997 104-35
ITAA 1997 109-5
ITAA 1997 109-5(2)
ITAA 1997 960-100
Case References:
Kizon v. Palmer
(1997) 142 ALR 488
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