Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-EAA - Debt deduction limitation rules for debt deduction creation (all relevant entities)  

Operative provisions

SECTION 820-423AA   Exceptions for acquisition of certain CGT assets  
Acquisition of new membership interests in entities

820-423AA(1)    
For the purposes of paragraph 820-423A(2)(f) , the acquisition of a *CGT asset is covered by this section if:

(a)    the CGT asset is a *membership interest in:

(i) an *Australian entity; or

(ii) a *foreign entity that is a company; and

(b)    the membership interest has not previously been held by any entity.

Acquisition of certain new depreciating assets

820-423AA(2)    
For the purposes of paragraph 820-423A(2)(f) , the acquisition of a *CGT asset is covered by this section if all of the following conditions are satisfied:

(a)    the CGT asset is a *depreciating asset other than an intangible asset;

(b)    an entity (the acquirer ) holds the CGT asset immediately after its acquisition;

(c)    at the time of the acquisition, it is reasonable to conclude that the acquirer expects to use the CGT asset:

(i) for a *taxable purpose; and

(ii) within Australia; and

(iii) within 12 months;

(d)    at the time of the acquisition, the CGT asset has not been *installed ready for use, or previously used for a taxable purpose, by any of the following:

(i) the acquirer;

(ii) an associate disposer of the acquirer;

(iii) an *associate pair of the acquirer.

Acquisition of certain debt interests

820-423AA(3)    
For the purposes of paragraph 820-423A(2)(f) , the acquisition of a *CGT asset is covered by this section if all of the following conditions are satisfied:

(a)    the CGT asset is a *debt interest;

(b)    an entity (the acquirer ) holds the debt interest immediately after its acquisition;

(c)    the debt interest is issued by an *associate pair of the acquirer;

(d)    the debt interest has not previously been held by any entity.