Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 360 - Early stage investors in innovation companies  

Subdivision 360-A - Tax incentives for early stage investors in innovation companies  

Operative provisions

SECTION 360-50   Modified CGT treatment  

360-50(1)  
This section applies if the issuing of a *share to an entity gives rise to an entitlement to a *tax offset under this Subdivision.

Note:

This section applies to any share that gives rise to the entitlement, regardless of whether subsection 360-25(2) reduces the amount of the tax offset.

360-50(2)  
The entity is taken to hold the *share on capital account.

360-50(3)  
The entity must disregard any *capital loss it makes from any *CGT event happening in relation to the *share if:


(a) the entity has continuously held the share since its issue; and


(b) the CGT event happens before the tenth anniversary of the issue of the share.

360-50(4)  
The entity may disregard any *capital gain it makes from any *CGT event happening in relation to the *share if:


(a) the entity has continuously held the share since its issue; and


(b) the CGT event happens on or after the first anniversary, but before the tenth anniversary, of the issue of the share.

360-50(5)  
If the entity has continuously held the *share since its issue, the *first element of its *cost base and *reduced cost base becomes, on the tenth anniversary of its issue, its *market value on that anniversary.


 

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