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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 149 - When an asset stops being a pre-CGT asset  

Subdivision 149-B - When asset of non-public entity stops being a pre-CGT asset  

SECTION 149-30  Effects if asset no longer has same majority underlying ownership  

149-30(1)  

 View history reference ITAA 36
The asset stops being a *pre-CGT asset at the earliest time when *majority underlying interests in the asset were not had by *ultimate owners who had *majority underlying interests in the asset immediately before 20 September 1985.

149-30(1A)  

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Also, Part 3-1 and this Part (except this Division) apply to the asset as if the entity had acquired it at that earliest time.

149-30(2)  

 View history reference ITAA 36
If the Commissioner is satisfied, or thinks it reasonable to assume, that at all times on and after 20 September 1985 and before a particular time *majority underlying interests in the asset were had by *ultimate owners who had *majority underlying interests in the asset immediately before that day, subsections (1) and (1A) apply as if that were in fact the case.

New owner standing in shoes of former owner

149-30(3)  

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Subsection (4) affects how the *majority underlying interests in the asset are worked out if an *ultimate owner (the new owner) has acquired a percentage (the acquired percentage) of the *underlying interests in the asset because of an event described in column 2 of an item in the table. The former owner is the entity described in column 3 of that item.
Events leading to new owner standing in for former owner
ItemFor this kind of event:The former owner is:
1*CGT event A1 or B1 if there is a roll-over under Subdivision 126-A (about marriage or relationship breakdowns) for the eventthe entity that, immediately before the event happened, owned the *CGT asset to which the event relates
...........
2the death of a personthat person

149-30(4)  

 ITAA 36
This section applies as if the new owner had (in addition to any other *underlying interests), at any time when the former owner had a percentage (the former owner's percentage) of the underlying interests in the asset, a percentage of the underlying interests in the asset equal to the acquired percentage, or the former owner's percentage at that time, whichever is the less.


 



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