Income Tax Assessment Act 1997

Chapter 4 inserted by No 162 of 2001.

Part 4-5 inserted by No 162 of 2001.

Div 768 heading substituted by No 110 of 2014, s 3 and Sch 2 item 3, applicable to distributions and non-share dividends made after 16 October 2014. Div 768 heading formerly read:

Division 768 - Exempt foreign income and gains

Div 768 inserted by No 96 of 2004.

Subdiv 768-H repealed by No 168 of 2006 , s 3 and Sch 4 item 87, applicable to CGT events that happen on or after 12 December 2006.

Subdiv 768-H inserted by No 21 of 2005.

S 768-605 repealed by No 168 of 2006 , s 3 and Sch 4 item 87, applicable to CGT events that happen on or after 12 December 2006. S 768-605 formerly read:

SECTION 768-605 Effect of capital gain or loss from underlying fixed trust assets  
768-605(1)
A *capital gain or *capital loss you make from a *CGT event happening to your interest in a *fixed trust is disregarded if:

(a) you are a foreign resident at the time of the CGT event; and

(b) your interest has the *necessary connection with Australia at that time; and

(c) the conditions in section 768-610 are satisfied.

768-605(2)
A *capital gain you make in respect of your interest in a *fixed trust is disregarded if:

(a) you are a foreign resident when you make the gain; and

(b) the gain is attributable to a *CGT event happening to a *CGT asset of that trust or of another fixed trust in which that trust has an interest (directly, or indirectly through a *chain of fixed trusts); and

(c) either:

(i) the asset does not have the *necessary connection with Australia at the time of the CGT event; or

(ii) the asset is an interest in a fixed trust and the conditions in section 768-610 are satisfied.

Note:

Section 115-215 treats a portion of a trust ' s capital gain as a capital gain made by a beneficiary, and applies the CGT discount to that portion as if the gain were made directly by the beneficiary.

768-605(3)
You are not liable to pay tax as a trustee of a *fixed trust in respect of an amount to the extent that:

(a) the amount gives rise to a *capital gain that is disregarded for a beneficiary under subsection (2); or

(b) the amount gives rise to a deduction for a beneficiary under section 768-615.

768-605(4)
To avoid doubt, subsection (3) does not affect the operation of subsection 98A(1) of the Income Tax Assessment Act 1936 (about taxing beneficiaries who are foreign residents at the end of an income year).

S 768-605 inserted by No 21 of 2005.