Income Tax Assessment Act 1997

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 716 inserted by No 117 of 2002, s 3 and Sch 1 item 3, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdiv 716-S heading substituted by No 15 of 2017, s 3 and Sch 4 item 77, effective 1 April 2017. The heading formerly read:

Subdivision 716-S - Miscellaneous consequences of tax cost setting

Subdiv 716-S inserted by No 56 of 2010, s 3 and Sch 5 item 4, applicable on and after 1 July 2002.

No 56 of 2010, s 3 and Sch 5 item 8 contains the following transitional provision:

8 Transitional provision - use of the tax cost setting amount  
(1)
This item applies if:

(a) the tax cost of an asset was set at the time (the joining time ) an entity (the joining entity ) became a subsidiary member of a consolidated group or MEC group, at the asset's tax cost setting amount; and

(b) the asset is a trade receivable that is denominated in foreign currency; and

(c) CGT event C2 happens in relation to the asset:

(i) after the joining time; and

(ii) before 23 August 2006; and

(d) just before the CGT event, the head company of the group held the asset because of the operation of subsection 701-1(1) of the Income Tax Assessment Act 1997 (the single entity rule); and

(e) disregarding section 118-20 of that Act, there is a capital gain or capital loss from the event; and

(f) the head company of the group makes a choice to apply this item, in accordance with subitems (4) and (5).

(2)
These provisions do not apply to the CGT event:

(a) section 6-5 of the Income Tax Assessment Act 1997 (about ordinary income);

(b) any other provision of that Act that includes an amount in assessable income, other than a provision in Part 3-1 or 3-3 of that Act;

(c) section 8-1 of that Act (about amounts you can deduct);

(d) any other provision of that Act that allows you to deduct an amount from your assessable income;

(e) section 118-20 of that Act.

(3)
The provisions referred to in subitem (2) can apply to the CGT event to the extent that any capital gain or capital loss from the event is attributable to currency exchange rate fluctuations.

(4)
A choice mentioned in paragraph (1)(f) must be made:

(a) by the day the head company lodges its income tax return for the income year in which the relevant CGT event happened; or

(b) within a further time allowed by the Commissioner.

(5)
The way the head company prepares its income tax return is sufficient evidence of the making of the choice.

S 716-410 repealed by No 99 of 2012, s 3 and Sch 3 item 44, effective 29 June 2012. For application provisions see note under s 701-55(5C) . S 716-410 formerly read:

SECTION 716-410 Rights to amounts that are expected to be included in assessable income after joining time  
716-410
This section covers an asset at a time if:

(a) the asset is a * right to future income; and

Note:

Such a right might be treated as a separate asset for the purposes of this Part (see subsection 701-90(2) ).

(b) the asset is held by an entity just before the time (the joining time ) it became a * subsidiary member of a * consolidated group; and

(c) it is reasonable to expect that an amount attributable to the asset will be included in the assessable income of the entity or any other entity after the joining time; and

(d) Division 230 does not apply in relation to the asset (disregarding section 230-455 ).

S 716-410 amended by No 99 of 2012, s 3 and Sch 3 item 24, by inserting a note at the end of para (a), effective 29 June 2012. For application provisions see note under s 701-55(5C) .

S 716-410 substituted by No 99 of 2012, s 3 and Sch 3 item 10, effective 29 June 2012. For application provisions see note under s 701-55(5C) . S 716-410 formerly read:

SECTION 716-410 Rights to amounts that are expected to be included in assessable income after joining time  
716-410
This section covers an asset at a time if:

(a) the asset is a valuable right covered by subsection 701-90(1) ; and

Note:

Such a valuable right is treated as a separate asset for the purposes of this Part (see subsection 701-90(2) ).

(b) the asset is held by an entity just before the time (the joining time ) it became a *subsidiary member of a *consolidated group; and

(c) it is reasonable to expect that an amount attributable to the asset will be included in the assessable income of the entity or any other entity after the joining time; and

(d) Division 230 does not apply in relation to the asset (disregarding section 230-455 ).

S 716-410 inserted by No 56 of 2010, s 3 and Sch 5 item 4, applicable on and after 1 July 2002. For transitional provision see note under Subdiv 716-S .