Pt X inserted by No 5 of 1991.

S 461(1) substituted by No 114 of 2010, s 3 and Sch 1 item 90, applicable to assessments for the 2006-07 income year and later income years. S 461(1) formerly read:

461(1)
Where:

(a) it is necessary, for the purposes of applying a provision of this Act in the assessment of a taxpayer for a year of income, to take into account the capital proceeds from a CGT event happening in relation to a CGT asset, being an interest in an attribution account entity (in this section called the " disposal entity " ); and

(b) immediately before the CGT event takes place, either or both of the following conditions are satisfied:

(i) there is an attribution surplus for the disposal entity in relation to the taxpayer;

(ii) there is an attribution surplus for one or more other attribution account entities in relation to the taxpayer, where each such entity is one in which the taxpayer has an indirect attribution account interest held through the disposal entity;

then, for the purposes of this Act:

(c) the capital proceeds that, apart from this section, would be taken into account under the provision referred to in paragraph (a) in respect of the CGT event is, subject to subsection (3), taken to be reduced by the amount of the attribution surplus, or the sum of the attribution surpluses, as the case requires; and

(d) an attribution debit is taken to arise at the time of the CGT event under section 372 , in relation to the taxpayer, for each attribution account entity (in this section called a " surplus entity " ) in relation to which there is an attribution surplus to which paragraph (1)(c) applies; and

(e) the amount of the attribution debit is equal to so much of the surplus as is taken into account under paragraph (1)(c); and

(f) there is no grossed-up amount in relation to the attribution debit under section 373 .

(g) (Repealed by No 143 of 2007 )

S 461(1) amended by No 143 of 2007 , s 3 and Sch 1 items 123 and 124, by substituting " section 373. " for " section 373; and " in para (f) and repealing para (g), applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under s 559A . Para (g) formerly read:

(g) section 376 has effect as if an attribution account payment were made by the surplus entity, at the time of the CGT event, that required the attribution debit under paragraph (1)(d) of this section to arise.

S 461(1) amended by No 101 of 2006 , s 3 and Sch 2 items 483 to 486, by omitting " to take into account the amount of consideration received, entitled to be received or taken to have been received, by the taxpayer in respect of the disposal of an asset, or " after " year of income, " in para (a), " disposal or " before " CGT event " in para (b), (c), (d) and (g), and " consideration or " before " capital proceeds " in para (c), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 461(1) amended by No 46 of 1998.

Archived:

S 461(2) repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 176, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .

S 461(3) substituted by No 114 of 2010, s 3 and Sch 1 item 91, applicable to assessments for the 2006-07 income year and later income years. S 461(3) formerly read:

461(3)
For the purposes of paragraph (1)(c):

(a) where the CGT event causes the taxpayer ' s attribution account percentage for a surplus entity to be reduced by a proportion, then only that proportion of the attribution surplus for the entity is, subject to this subsection, to be taken into account under that paragraph; and

(b) where there is only one attribution surplus referred to in that paragraph and (after any application of paragraph (a) of this subsection) it exceeds the capital proceeds from the CGT event, then only so much of the surplus as does not exceed those capital proceeds is to be taken into account under paragraph (1)(c); and

(c) where there are 2 or more attribution surpluses referred to in paragraph (1)(c) and (after any application of paragraph (a) of this subsection) their sum exceeds the capital proceeds from the CGT event, then:

(i) if the taxpayer makes an election that for the purposes of this paragraph, a part of each surplus (after any application of paragraph (a)) such that the sum of the amounts to which the election relates equals those capital proceeds - only the part to which the election relates of each surplus is to be taken into account under paragraph (1)(c); or

(ii) if subparagraph (i) does not apply - only a proportion of each surplus (after any application of paragraph (a)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:

Amount of capital proceeds Total surplus

where:

total surplus
means the sum of the attribution surpluses (after any application of paragraph (a)).

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History

Archived:

S 461(3)(c)(ii) substituted by No 101 of 2006 , s 3 and Sch 2 item 492, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .

S 461(3) amended by No 101 of 2006 , s 3 and Sch 2 items 487 to 491, by omitting " disposal of the asset, or " before " the CGT event " in para (a), " the consideration in respect of the disposal or " before " the capital proceeds " in para (b) and (c), and " the consideration or " before " those capital proceeds " in para (b) and (c)(i), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .

S 461(3) amended by No 46 of 1998 and No 101 of 1992.

S 461(4) amended by No 101 of 1992.

S 461(4A) inserted and amended by No 58 of 2000.

S 461 inserted by No 5 of 1991.