Taxation Laws Amendment Act (No. 1) 1999 (16 of 1999)
Schedule 1 Denial of certain capital losses
Part 2 General on-going rollover etc. scheme amendments
Income Tax Assessment Act 1936
13 After paragraph 177F(3)(b)
Insert:
or (c) if, in the opinion of the Commissioner:
(i) a capital loss would have been incurred by the relevant taxpayer during a year of income if the scheme had not been entered into or carried out, being a capital loss that was not incurred or would not, but for this subsection, be incurred, as the case may be, by the relevant taxpayer during that year of income; and
(ii) it is fair and reasonable that the capital loss or a part of that capital loss should be incurred by the relevant taxpayer during that year of income;
determine that the capital loss or the part, as the case may be, should be incurred by the relevant taxpayer during that year of income;