Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 3   AMENDMENTS RELATING TO SUPERANNUATION

Part 2   INCOME TAX ASSESSMENT ACT 1936

Division 4   Resident superannuation funds that were previously non-resident superannuation funds

27   Before subsection 160ZA(5)

Insert:

"(4B) If:

(a) apart from this subsection a capital gain (the 'notional capital gain') would be taken for the purposes of this Part to have accrued during the year of income to a taxpayer that is the trustee of a superannuation fund in respect of the disposal of an asset; and

(b) the market value of the asset was taken into account in determining the fund's net previous income in respect of previous years of income under section 288B;

the following paragraphs have effect:

(c) if the notional capital gain exceeds the amount that, apart from this subsection, would have been taken for the purposes of this Part to have accrued during the year of income to the taxpayer in respect of the disposal of the asset if the consideration in respect of the disposal had been equal to the market value referred to in paragraph (b) - the amount of the capital gain that is taken for the purposes of this Part to have accrued to the taxpayer during the year of income in respect of the disposal of the asset is an amount equal to the excess;

(d) in any other case - no capital gain is taken for the purposes of this Part to have accrued to the taxpayer during a year of income in respect of the disposal of the asset.".