Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains  

Subdivision 115-B - Discount percentage  

SECTION 115-115   Foreign or temporary residents - percentage for individuals  

115-115(1)  
This section applies if section 115-105 or 115-110 applies to a * discount capital gain. Periods starting after 8 May 2012

115-115(2)  
If the discount testing period starts after 8 May 2012, the following (expressed as a percentage) is the percentage resulting from this section:


Number of days during discount testing period that you
were an Australian resident (but not a *temporary resident)
2 × Number of days in discount testing period

Note 1:

The percentage will be 0 % if you were a foreign resident or temporary resident during all of the discount testing period.

Note 2:

Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - Australian residents

115-115(3)  
If:


(a) the discount testing period starts on or before 8 May 2012; and


(b) you were an Australian resident (but not a * temporary resident) on 8 May 2012;

the following (expressed as a percentage) is the percentage resulting from this section:


Number of days in discount testing period - Number of apportionable days that you
were a foreign resident or *temporary resident
2 × Number of days in discount testing period

where:

apportionable day
means a day, after 8 May 2012, during the discount testing period.

Note:

Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - other residents may choose market value

115-115(4)  
The percentage resulting from this section is worked out from the following table if:


(a) the discount testing period starts on or before 8 May 2012; and


(b) you were a foreign resident or * temporary resident on 8 May 2012; and


(c) the most recent * acquisition (before the * CGT event) of the * CGT asset happened on or before 8 May 2012; and


(d) the CGT asset ' s * market value on 8 May 2012 exceeds the amount that was its * cost base at the end of that day; and


(e) you choose for this subsection to apply.

Note 1:

The CGT event and CGT asset are those expressly or impliedly referred to in section 115-105 or 115-110 .

Note 2:

Section 115-30 has special rules about when assets are acquired.


Percentage using market value
Item Column 1 Column 2
If the excess from paragraph (d): then, the percentage is:
1 is equal to or greater than the amount of the * discount capital gain 50 % .
2 falls short of the amount of the * discount capital gain worked out under subsection (5).

115-115(5)  
For the purposes of table item 2 in subsection (4), the following (expressed as a percentage) is the percentage resulting from this section:

Formula 7.56

where:

apportionable day
means a day, after 8 May 2012, during the discount testing period.

eligible resident
means an Australian resident who is not a * temporary resident.

excess
means the excess from paragraph (4)(d).

shortfall
means the amount that the excess falls short of the amount of the * discount capital gain.

Note:

Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - other residents not choosing market value

115-115(6)  
If:


(a) the discount testing period starts on or before 8 May 2012; and


(b) you were a foreign resident or * temporary resident on 8 May 2012; and


(c) subsection (4) does not apply;

the following (expressed as a percentage) is the percentage resulting from this section:


Number of apportionable days that you were an
Australian resident (but not a *temporary resident)
2 × Number of days in discount testing period

where:

apportionable day
means a day, after 8 May 2012, during the discount testing period.

Note 1:

The percentage will be 0 % if you were a foreign resident or temporary resident on each of the apportionable days.

Note 2:

Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.


 

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