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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains    View history reference

Subdivision 115-B - Discount percentage    View history reference

SECTION 115-110  Foreign or temporary residents - individuals with trust gains  

 View history reference

Object

115-110(1)  

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

115-110(2)  

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
ItemColumn 1Column 2
 If this is the case:the discount testing period is:
1your trust is a * fixed trustthe 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.
2your 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.
3your 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 trustthe 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.

Note:

Section 115-30 has special rules about when assets (including membership interests in trusts) are acquired.

Changed residency status

115-110(3)  

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.


 



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