Draft Taxation Determination
TD 2002/D11
Income tax: capital gains: in the first element of the cost base of a CGT asset in subsection 110-25(2) of the Income Tax Assessment Act 1997, does money or property necessarily have to be paid or given to the entity that caused a CGT event (for example a disposal) to happen to the asset?
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Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 2003/1.
FOI status:
draft only - for comment| Preamble |
| Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office. |
1. No. The money does not have to be paid or given to the entity which disposed of the CGT asset. However, the money or property still needs to have been paid or given in respect of the acquisition of the asset.
Example: Bill sells an asset to James for $100,000. The terms of the sale are that James must pay the $100,000 to an entity nominated by Bill. Even though James does not pay the money to Bill, the person who disposed of the asset, James pays it 'in respect of acquiring' the asset and the amount therefore can be included in the first element of the asset's cost base.
Your comments
2. 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.
| Comments by Date: | 4 December 2002 |
| Contact officer details have been removed following publication of the final ruling. | |
Commissioner of Taxation
6 November 2002
Not previously issued in draft form.
References
ATO references:
NO 2002/016939
Subject References:
acquisition
asset
CGT asset
cost base
disposed
entity
first element
give
giving
money
pay
property
Legislative References:
ITAA 1997 110-25(2)