Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 16E - Accruals assessability, etc., in respect of certain security payments  

SECTION 159GS   BALANCING ADJUSTMENTS ON TRANSFER OF QUALIFYING SECURITY  

159GS(1)   [Profit amount on transfer]  

Where there is a profit amount in relation to the transfer of a qualifying security by a taxpayer in a year of income:

(a) if there is a net assessable amount in relation to the transfer and:

(i) the profit amount exceeds the net assessable amount - an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income; or

(ii) the net assessable amount exceeds the profit amount - an amount equal to the excess shall be allowable as a deduction from the assessable income of the taxpayer of the year of income; and

(b) if there is a net deductible amount in relation to the transfer - an amount equal to the sum of that amount and the profit amount shall be included in the assessable income of the taxpayer of the year of income.

159GS(2)   [Loss amount on transfer]  

Where there is a loss amount in relation to the transfer of a qualifying security by a taxpayer in a year of income and:

(a) there is a net assessable amount in relation to the transfer - an amount equal to the net assessable amount shall be allowable as a deduction from the assessable income of the taxpayer of the year of income; or

(b) there is a net deductible amount in relation to the transfer that exceeds the loss amount - an amount equal to the excess shall be included in the assessable income of the taxpayer of the year of income.

159GS(3)   [Calculating profit, loss, net assessable and net deductible amounts]  

For the purposes of the application of this section in relation to the transfer (in this subsection referred to as the ``relevant transfer'' ) of a qualifying security by a taxpayer:

(a) where the transfer price, as increased by the amount of any payments (other than periodic interest payments) made to the taxpayer under the security in respect of the period when the security was held by the taxpayer exceeds:

(i) the issue price of the security; or

(ii) where the security was acquired by the taxpayer on transfer - the transfer price in relation to that transfer;

there shall be taken to be a profit amount in relation to the relevant transfer of an amount equal to the excess;

(b) where the issue price of the security or, where the security was acquired by the taxpayer on transfer, the transfer price in relation to that transfer exceeds the sum of the transfer price in relation to the relevant transfer and any payments (other than periodic interest payments) made to the taxpayer under the security in respect of the period when the security was held by the taxpayer, there shall be taken to be a loss amount in relation to the relevant transfer of an amount equal to the excess;

(c) where the sum of all amounts (if any) included under section 159GQ in the assessable income of the taxpayer in respect of the security in respect of the period when the security was held by the taxpayer exceeds the sum of all amounts (if any) allowable under those sections as deductions from the assessable income of the taxpayer in respect of the security in respect of that period, there shall be taken to be a net assessable amount in relation to the relevant transfer of an amount equal to the excess; and

(d) where the sum of all amounts (if any) allowable under section 159GQ as deductions from the assessable income of the taxpayer in respect of the security in respect of the period when the taxpayer held the security exceeds the sum of all amounts (if any) included under those sections in the assessable income of the taxpayer in respect of the security in respect of that period, there shall be taken to be a net deductible amount in relation to the relevant transfer of an amount equal to the excess.