INCOME TAX ASSESSMENT ACT 1997
SPECIALIST LIABILITY RULES
CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Pt 3-1 inserted by No 46 of 1998.
Div 115 inserted by No 169 of 1999.
Tax relief for shareholders in listed investment companies
Subdiv 115-D inserted by No 169 of 2001.
LIC capital gain
is a *capital gain:
(a) from a *CGT event that happens on or after 1 July 2001; and
(b) that is made by a company that is a *listed investment company from a *CGT asset that is an investment to which paragraph
(c) that meets the requirements of sections
(d) that is not a capital gain that could not be a *discount capital gain had it been made by an individual because of section
(e) that is included in the *net capital gain of the company; and
(f) that is reflected in the taxable income of the company for the income year in which the company had the net capital gain.
The listed investment company must be able to demonstrate that at least some part of the LIC capital gain, whether made by the company itself or by another listed investment company, remains after claiming deductions and losses against that income for the income year.
Section 115-30 may affect the date of acquisition of a CGT asset for the purposes of sections
However, a *capital gain made by a company is not a
LIC capital gain
if the company:
(a) became a *listed investment company after 1 July 2001; and
(b) *acquired the *CGT asset concerned before the day on which it became a listed investment company.
In applying subsection (2), a *CGT asset is treated as if it had been *acquired by the company
it became a *listed investment company if the asset would otherwise be treated as being acquired
that time because of one of these provisions:
(about trading stock);
(replacement asset roll-overs for exchange of *shares, units, rights or options);
S 115-285(3) amended by
No 164 of 2007
, s 3 and Sch 8 item 9, by inserting para (ba), applicable to CGT events happening on or after 1 July 2006.
S 115-285 amended by No 117 of 2002 and inserted by No 169 of 2001.