Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 855 - Capital gains and foreign residents  

Subdivision 855-A - Disregarding a capital gain or loss by foreign residents  

SECTION 855-10   Disregarding a capital gain or loss from CGT events  

855-10(1)  
Disregard a *capital gain or *capital loss from a *CGT event if:


(a) you are a foreign resident, or the trustee of a *foreign trust for CGT purposes, just before the CGT event happens; and


(b) the CGT event happens in relation to a *CGT asset that is not *taxable Australian property.

Note:

A capital gain or capital loss from a CGT asset you have used at any time in carrying on a business through a permanent establishment in Australia may be reduced under section 855-35 .

855-10(2)  
The *CGT asset in relation to which a *CGT event happens includes the following:


(a) for CGT event D1 (about creating contractual or other rights) - the CGT asset that is the subject of the creation of the contractual or other rights;

Example:

You grant an easement over land in Australia. The land is the subject of the creation of the rights in the easement. Therefore, the CGT event happens in relation to the land.


(b) for CGT event D2 (about granting an option) - the CGT asset that is the subject of the option;


(c) for CGT event F1 (about granting a lease) - the CGT asset that is the subject of the lease;


(d) for CGT event J1 (about a company ceasing to be a member of wholly-owned group after roll-over) - the roll-over asset.


 

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