Taxation Determination
TD 1999/81
Income tax: capital gains: is a court an entity for the purposes of Event Number D1 (about an entity creating contractual or other rights in you) in subsection 109-5(2) of the Income Tax Assessment Act 1997?
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
may be releasedFOI number: I 1021225| Preamble |
| This Taxation Determination is a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and is legally binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a public ruling and how it is legally binding on the Commissioner. |
| Date of effect |
| This determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). |
2. The term 'entity' is defined in section 960-100 of the Income Tax Assessment Act 1997 to mean an individual, a body corporate, a body politic, a partnership, any other unincorporated association or body of persons, a trust or a superannuation fund.
3. A court is not a body corporate, a body politic, or an individual (see Kizon v. Palmer (1997) 142 ALR 488 at 505). So, a court is not an 'entity' as that term is used in the acquisition rules in subsection 109-5(2), Event Number D1.
Note
4. The importance of this issue is for the application of the general acquisition rules in Division 109 in Part 3-1. If a court were an entity it could create rights in another entity and that entity would acquire the rights in accordance with subsection 109-5(2), Event Number D1.
Commissioner of Taxation
15 December 1999
Previously released as TD 1999/D93
References
ATO references:
NO 99/11446-1
BO CPL99/76
Subject References:
acquisition
asset
CGT asset
body politic
capital gains
court
creation of rights
entity
Event Number D1
Legislative References:
ITAA 1997 109-5
ITAA 1997 109-5(2)
ITAA 1997 960-100
Case References:
Kizon v. Palmer
(1997) 142 ALR 488