INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 3 - SPECIALIST LIABILITY RULES
|PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Pt 3-1 inserted by No 46 of 1998.
Div 115 inserted by No 169 of 1999.
The object of this section (with section 115-115) is to adjust the discount percentage so as to deny you a discount for a *capital gain you make because of section 115-215 to the extent that the gain was accrued while you were a foreign resident or *temporary resident.
When this section applies
This section applies to a *discount capital gain if:
(a) you are an individual and a beneficiary of a trust (your trust); and
(b) because of section 115-215, Division 102 applies to you as if you had made the discount capital gain on a particular day (your gain day) for a *capital gain (the relevant trust gain) of the trust estate; and
(c) the period (the discount testing period) worked out from the following table ends after 8 May 2012; and
(d) you were a foreign resident or *temporary resident during some or all of so much of that period as is after 8 May 2012.
|Working out the discount testing period|
|Item||Column 1||Column 2|
| ||If this is the case:||the discount testing period is:|
|1||your trust is a *fixed trust||the period:|
|(a)||starting on the most recent day (before your gain day) that you became a beneficiary of your trust; and|
|(b)||ending on your gain day.|
|2||your trust is not a *fixed trust and the relevant trust gain:||the period:|
|(a)||is made because a *CGT event happened in relation to a *CGT asset *acquired by the trustee of your trust; or||(a)||starting on the day of that acquisition; and|
|(b)||is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a *capital gain made by the trustee of another trust that is not a fixed trust because a CGT event happened in relation to a CGT asset acquired by that trustee||(b)||ending on your gain day.|
|3||your trust is not a *fixed trust and the relevant trust gain is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a *capital gain made by a fixed trust||the period:|
|(a)||starting on the most recent day (before your gain day) that the trust whose capital gain is directly referable to the capital gain made by the fixed trust became a beneficiary of the fixed trust; and|
|(b)||ending on your gain day.|
Section 115-30 has special rules about when assets (including membership interests in trusts) are acquired.
Changed residency status
For the purposes of this section and section 115-115, if:
(a) your trust is a *fixed trust and another individual owned your *membership interest in your trust on a particular day before the discount testing period ends; and
(b) on that day, that individual was one of the following (that individual's residency status):
(i) an Australian resident (but not a *temporary resident);
(ii) a temporary resident;
(iii) a foreign resident; and
(c) section 115-30 treats you as having *acquired your membership interest in your trust when that individual, or an earlier owner of that membership interest, acquired it;
you are treated as having the same residency status on that day as that individual had on that day.
S 115-110 inserted by No 124 of 2013, s 3 and Sch 7 item 6, effective 29 June 2013.