Income Tax Assessment Act 1997
Pt 3-1 inserted by No 46 of 1998.
Div 116 inserted by No 46 of 1998.
There are 6 modifications to the general rules that may be relevant. The table in section 116-25 lists which ones may be relevant to each CGT event listed in the table.
S 116-10(1) amended by No 38 of 2008 , s 3 and Sch 1 item 9, by substituting " 6 modifications " for " 5 modifications " , applicable to amounts misappropriated in the 2007-08 income year and later income years.
Explanation of modifications
116-10(2)
The first is a market value substitution rule. It is relevant if:
116-10(3)
The second is an apportionment rule. It is relevant if a payment you receive in connection with a transaction relates in part only to a CGT event.
Example:
You sell 3 CGT assets for a total of $100,000. The $100,000 needs to be apportioned between the 3 assets.
116-10(4)
The third is a non-receipt rule. It is relevant if you do not receive, or are not likely to receive, some or all of the capital proceeds from a CGT event.
116-10(5)
The fourth is a repaid rule. It is relevant if you are required to repay some or all of the capital proceeds from a CGT event.
116-10(6)
The fifth is relevant only if another entity assumes a liability in connection with a CGT event.
116-10(7)
The sixth relates to misappropriation by an employee or agent. It is relevant if your employee or agent misappropriates all or part of the capital proceeds from a CGT event.
Note 1:
Also, these provisions of the Income Tax Assessment Act 1936 modify capital proceeds:
Note 2:
Section 230-505 of this Act (Division 230 financial arrangement as consideration for provision or acquisition of a thing) also modifies capital proceeds.
S 116-10(7) amended by No 114 of 2010, s 3 and Sch 1 item 48, by substituting note 1, applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. Note 1 formerly read:
Note 1: Also, these provisions of the Income Tax Assessment Act 1936 modify capital proceeds:
• sections 159GZZZF and 159GZZZG (cancellation of shares in a holding company); • sections 159GZZZQ and 159GZZZS (buy-backs of shares); • sections 401, 422, 423 and 461 (CFC ' s); • section 613 (foreign investment funds).
S 116-10(7) amended by No 15 of 2009 , s 3 and Sch 1 items 74 and 75, by substituting " Note 1 " for " Note " and inserting Note 2, effective 26 March 2009. For application and transitional provisions see note under Div 230 heading.
S 116-10(7) inserted by No 38 of 2008 , s 3 and Sch 1 item 10, applicable to amounts misappropriated in the 2007-08 income year and later income years.
S 116-10 inserted by No 46 of 1998.
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