Draft Taxation Determination

TD 1999/D53

Income tax: capital gains: is an entity (other than a Commonwealth, State or Territory authority) which is given authority to acquire a CGT asset under a Commonwealth, State or Territory Act an 'Australian government agency' for the purposes of Subdivision 124-B of the Income Tax Assessment Act 1997?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 2000/36.

FOI status:

draft only - for comment

Preamble

1. No. For Subdivision 124-B of the Income Tax Assessment Act 1997 to apply, the entity acquiring a CGT asset - not being the Commonwealth, a State or a Territory - must be an authority of the Commonwealth or of a State or of a Territory and not merely an entity which is given authority under a Commonwealth, State or Territory Act to acquire the asset. Nor does the Subdivision apply if the entity acquiring the asset is merely authorised to do so by a Commonwealth, State or Territory authority.

2. The expression 'Australian government agency' is defined in subsection 995-1(1) to mean the Commonwealth, a State or a Territory or an authority of the Commonwealth, a State or a Territory.

Your comments

We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Commissioner of Taxation
4 August 1999

References

ATO references:
NO 99/10859-2
BO CGT Involuntary Disposal summit 1999

Subject References:
Asset
Australian government agency
authority
capital gain
CGT asset
compulsory acquisition
Commonwealth
Commonwealth authority
entity
State
State authority
Territory
Territory authority

Legislative References:
ITAA 1997 995-1(1)
ITAA 1997 Subdivision 124-B