CGT Determination Number 24

TD 24

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

This version is no longer current. Please follow this link to view the current version.

• Please note that the PDF version is the authorised version of this ruling.
  This document has changed over time. View its history.

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 .

Commissioner of Taxation
31 October 1991

References

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

Subject References:
Cash acquired;
Underlying property

Legislative References:
160ZZT