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-C - When asset of public entity stops being a pre-CGT asset  

SECTION 149-60   What the evidence must show  

149-60(1A)    
To avoid the consequences in section 149-70 , the following condition must be complied with.

149-60(1)    
On the basis solely of the evidence given to the Commissioner under subsection 149-55(1), the Commissioner must be satisfied that, or think it reasonable to assume that, at the end of the *test day, *majority underlying interests in the asset were had by *ultimate owners who also had *majority underlying interests in the asset at the end of the starting day. The starting day is:

(a) a day the entity chooses under subsection (2); or

(b) if no day is so chosen - 19 September 1985.

149-60(2)    
The day chosen:

(a) must be no earlier than 1 July 1985 and no later than 30 June 1986; and

(b) must be one the choice of which will allow evidence to be given that enables a reasonable approximation of the *ultimate owners who had *underlying interests in the assets of the entity at the end of 19 September 1985.

How unidentified owners are treated

149-60(3)    
So far as the evidence does not show who had *underlying interests in the asset at the end of the *starting day, the evidence must be treated on the assumption that those interests were then had by *ultimate owners who did not have *underlying interests in the asset at the end of the *test day.

New owner standing in the shoes of former owner

149-60(4)    

Subsection (5) affects how the evidence must be treated 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
Item	For 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 event	the entity that, immediately before the event happened, owned the *CGT asset to which the event relates
.
2	the death of a person	that person

149-60(5)    
The evidence must be treated on the assumption that 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.

Determining the end of a day

149-60(6)    
For the purposes of this section, the end of a day is determined according to legal time in the place where the records of ownership of shares or other interests in the entity are kept.