Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-K - Other CGT events  

SECTION 104-245   Working out capital gain or loss for CGT event K7: pooled assets  

104-245(1)    
You make a capital gain if the *depreciating asset ' s *termination value is more than its *cost. The amount of the *capital gain is:

[*Termination value   −   *Cost]   ×   [1   −   Taxable use fraction]

where:

taxable use fraction
is the taxable use percentage (expressed as a fraction) that you estimated for the asset when you allocated it to the pool.

Note:

The CGT concepts of cost base and capital proceeds are not relevant for this event.

104-245(2)    
You make a capital loss if the *depreciating asset ' s *cost is more than its *termination value. The amount of the *capital loss is:

[*Cost   −   *Termination value]   ×   [1   −   Taxable use fraction]

where:

taxable use fraction
has the same meaning as in subsection (1).

104-245(3)    

In applying subsection (1) or (2) , reduce the *termination value of the *depreciating asset by so much of an amount misappropriated by your employee or *agent (whether by theft, embezzlement, larceny or otherwise) as represents an amount applicable to you under:

(a) item 8 of the table in subsection 40-300(2) ; or

(b) item 1, 3, 4 or 6 of the table in subsection 40-305(1) ;

in relation to the *balancing adjustment event.

104-245(4)    

If you later receive an amount as *recoupment of all or part of the amount misappropriated, the amount applicable under subsection (3) is increased by the amount received.

104-245(5)    

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this section for an income year if:

(a) you discover the misappropriation, or you receive an amount as *recoupment of all or part of the amount misappropriated, after you lodged your *income tax return for the income year; and

(b) the amendment is made at any time during the period of 4 years starting immediately after you discover the misappropriation or receive the amount.