Taxation Determination
TD 2000/34
Income tax: capital gains: can property or a right, the 'market value' of which is nil, be a CGT asset?
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
may be releasedFOI number: I 1022789| Preamble |
| The number, subject heading, date of effect and paragraph 1 of this Taxation Determination are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of the Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain how a Determination is legally or administratively binding. |
| 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). |
1. Yes. Property or a right can be a CGT asset even if its market value is nil.
2. The existence of a CGT asset is not dependent on its having a market value greater than nil. The definition of 'CGT asset' in subsection 108-5(1) of the Income Tax Assessment Act 1997 does not impose any such condition.
Commissioner of Taxation
13 September 2000
Previously issued as TD 1999/D70
References
ATO references:
NO 99/10671-9
Related Rulings/Determinations:
IT 2540 para 13
Subject References:
CGT asset
market value
property
rights
Legislative References:
ITAA 1997 108-5(1)