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 160ZZPZK   EXEMPTION REDUCED IF CONTROLLING INDIVIDUAL DID NOT CONTROL TAXPAYER THROUGHOUT TAXPAYER'S OWNERSHIP OF ASSET  

160ZZPZK(1)   [Calculation of reduction amount]  

If:

(a) immediately before the disposal of the asset concerned, there was only one controlling individual of the taxpayer; and

(b) at any time during the period (the ownership period ) from the later of:

(i) the start of the 1992-93 year of income; and

(ii) the time when the taxpayer acquired the asset;

until immediately before the disposal, the individual was not the controlling individual of the taxpayer;

the asset's CGT exempt amount is reduced by the following amount:

Asset's CGT exempt amount

×

Part of ownership period when   individual was not controlling                 individual of the taxpayer                       Ownership period

160ZZPZK(2)   [Where lesser amount]  

However, if, disregarding subparagraph (1)(b)(i), the asset's CGT exempt amount would be reduced by a lesser amount, the asset's CGT exempt amount is instead reduced by that lesser amount.

160ZZPZK(3)   If there are 2 controlling individuals.  

If, immediately before the disposal, there were 2 controlling individuals of the taxpayer, the asset's CGT exempt amount is reduced by the sum of the amounts, worked out for each controlling individual, using the formula:

Individual's exemption percentage (see paragraph 160ZZPZI(4)(d))

×

Reduction required under subsection   (1) or (2) if the individual were the     only controlling individual