CGT Determination Number 24

TD 24

Capital Gains: How is cash acquired after 19 September 1985 treated for section 160ZZT purposes?

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FOI status:

may be releasedFOI number: I 1019149

1. For the purposes of this Determination, cash is taken to be money on hand i.e. physically-held.

2. Cash acquired by a private company or private trust estate after 19 September 1985 is considered to be part of the underlying property in section 160ZZT.

3. Accordingly, where the total value of the cash and other property acquired after 19 September 1985 is not less than 75% of the net worth of the relevant entity, section 160ZZT may have application.

4. However, the capital gain attributable to cash would be nil because the value of the cash at the date of disposal of either the shares or an interest in a private trust estate would be the same as at the date it was acquired .

Note:
In determining whether or not cash held at 19 September 1985 is still held post-CGT, a "first in first out" basis will be acceptable.

Commissioner of Taxation
31 October 1991

References

ATO references:
NO N.O. 86/9834-1

ISSN 1037 - 1419

Subject References:
Cash acquired;
Underlying property

Legislative References:
160ZZT

TD 24 history
  Date: Version: Change:
You are here 31 October 1991 Original ruling  
  23 June 2004 Withdrawn  

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