INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17B - Disposal of small business assets: proceeds used for retirement  

Subdivision C - Taxpayers that are private companies or trusts  

SECTION 160ZZPZJ   WHAT HAPPENS IF THE DISPOSAL IS EXEMPT  

160ZZPZJ(1)   [Consequences apply]  

If the conditions in section 160ZZPZH or 160ZZPZI are met, the following consequences apply.

160ZZPZJ(2)   Capital gain reduced by asset's CGT exempt amount.  

The amount of the capital gain that otherwise would have accrued in respect of the disposal concerned is reduced (but not below nil) by the asset's CGT exempt amount.

160ZZPZJ(3)   Other CGT exemptions/concessions are not available.  

Divisions 15, 17, 17A, 18 and 19 do not apply in respect of the disposal.

160ZZPZJ(4)   Treatment of ETP.  

Any ETP, or part of an ETP, the taxpayer makes, to the extent required to comply with subsection 160ZZPZH(5) (including as it is applied by subsection 160ZZPZI(5) :

(a) is taken, for the purposes of this Act, to consist solely of a CGT exempt component; and

(b) is not an allowable deduction of the taxpayer.

Note:

For the rules about ETPs (eligible termination payments), see Subdivision AA of Division 2 of Part III .