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Taxation Determination

TD 94/63

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?

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    This ruling contains references to repealed provisions, some of which may have been rewritten. The ruling still has effect. Paragraph 32 in TR 2006/10 provides further guidance on the status and binding effect of public rulings where the law has been repealed or repealed and rewritten. The legislative references at the end of the ruling indicate the repealed provisions and, where applicable, the rewritten provisions.
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FOI status:

may be releasedFOI number: I 1217657

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, 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 a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

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
21/7/94

Previously issued as Draft TD 94/D63

References

ATO references:
NO 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(2B);
ITAA 160ZD(2B)(a);
ITAA 160ZD(2B)(b)

TD 94/63 history
  Date: Version: Change:
  21 July 1994 Original ruling  
You are here 29 November 2006 Original ruling + note Repeal provision note

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