Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-CB - Working out the net capital gain and the net capital loss for the income year of the change  

Working out the company's net capital gain and net capital loss

SECTION 165-108   Next, calculate the notional net capital gain or notional net capital loss for each period  

165-108(1)    
The company has a notional net capital gain for a period if the total of the *capital gains it made during the period exceeds the total of the *capital losses it made during the period. The notional net capital gain is the amount of the excess.

165-108(2)    
On the other hand, if the total of those losses exceeds the total of those gains, the company has a notional net capital loss for the period, equal to the excess.

165-108(3)    
If the company has a *notional net capital loss for none of the periods in the income year, this Subdivision has no further application, and the company's *net capital gain for the income year is calculated in the usual way.

The usual way of working out the net capital gain is set out in section 102-5 .

Trust's capital gain attributed to company beneficiary

165-108(4)    
If some or all (the attributable amount ) of an amount included in the company's assessable income for the income year under:

(a) section 97 (Beneficiary of a trust estate who is not under a legal disability) of the Income Tax Assessment Act 1936 ; or

(b) section 98A (Non-resident beneficiaries assessable in respect of certain income) of that Act;

is attributable to a *capital gain that the trust made at a particular time during the period, this section applies to the attributable amount as if it were a *capital gain made by the company at that time.