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Draft Taxation Determination

TD 94/D63

Income tax: capital gains: if a statutory licensee disposes of a statutory licence by way of the expiry, loss or destruction of the licence, does subsection 160ZD(2) of the Income Tax Assessment Act 1936 deem the licensee to have received the market value of the licence?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 94/63.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) present the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. By virtue of paragraph 160ZD(2B)(a), subsection 160ZD(2) does not apply if a statutory licence is disposed of by way of the expiry, loss or destruction of the licence. The statutory licensee is therefore not deemed to have received the market value of the licence.

2. The specific mention of a 'statutory licence' in paragraph 160ZD(2B)(b) does not preclude such a licence from being an 'asset' for the purposes of paragraph 160ZD(2B)(a).

Commissioner of Taxation
26 May 1994

References

ATO references:
NO
BO CGTDET101

ISSN 1038 - 8982

Subject References:
asset
CGT asset
destruction
disposal
cancellation
expiry
loss
market value
statutory licence

Legislative References:
ITAA 160ZD(2)
ITAA 160ZD(2D)
ITAA 160ZD(2B)(a)
ITAA 160ZD(2B)(b)


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