Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 115 - Discount capital gains and trusts ' net capital gains  

Subdivision 115-D - Tax relief for shareholders in listed investment companies  

Operative provisions

SECTION 115-285   Meaning of LIC capital gain  

115-285(1)    
A LIC capital gain is a *capital gain:

(a) from a *CGT event that happens on or after 1 July 2001; and

(b) that is made by a company that is a *listed investment company from a *CGT asset that is an investment to which paragraph 115-290(1)(c) applies; and

(c) that meets the requirements of sections 115-20 and 115-25 ; and

(d) that is not a capital gain that could not be a *discount capital gain had it been made by an individual because of section 115-40 or 115-45 ; and

(e) that is included in the *net capital gain of the company; and

(f) that is reflected in the taxable income of the company for the income year in which the company had the net capital gain.

Note 1:

The listed investment company must be able to demonstrate that at least some part of the LIC capital gain, whether made by the company itself or by another listed investment company, remains after claiming deductions and losses against that income for the income year.

Note 2:

Section 115-30 may affect the date of acquisition of a CGT asset for the purposes of sections 115-25 , 115-40 and 115-45 .

115-285(2)    
However, a *capital gain made by a company is not a LIC capital gain if the company:

(a) became a *listed investment company after 1 July 2001; and

(b) *acquired the *CGT asset concerned before the day on which it became a listed investment company.

115-285(3)    
In applying subsection (2), a *CGT asset is treated as if it had been *acquired by the company before it became a *listed investment company if the asset would otherwise be treated as being acquired after that time because of one of these provisions:

(a) section 70-110 (about trading stock);

(b) Subdivision 124-E or 124-F (replacement asset roll-overs for exchange of *shares, units, rights or options);

(ba) Subdivision 124-Q (exchange of stapled ownership interests);

(c) Subdivision 126-B (same-asset roll-over for transfers within certain wholly-owned groups).