Income Tax Assessment Act 1997
View history note
Hide history noteFor the purposes of this Subdivision, treat a *CGT asset as if it were an active asset of an entity at a particular time, if:
(a) the entity owns it at that time; and
(b) it is either a *share in a company, or an interest in a trust; and
(c) at that time, the entity:
(i) is a *CGT concession stakeholder of the company or trust; or
(ii) if the entity is not an individual - has a *small business participation percentage in the company or trust of at least 20%; and
(d) at that time, the company or trust:
(i) is carrying on a *business, and has been carrying on a business since the start of the most recent income year ending before that time; and
(ii) is not a *subsidiary member of a *consolidated group; and
(e) the assessable income of the company or trust for that most recent income year was greater than nil, and at least 80% of that assessable income was:
(i) from the carrying on of one or more businesses; but
(ii) not *derived (directly or indirectly) from an asset of a kind to which paragraph 152-40(4)(d) or (e) applies.
Note:
Paragraphs 152-40(4)(d) and (e) refer to financial instruments and assets used to derive interest, annuities, rent, royalties or foreign exchange gains.
118-570(2)
For the purposes of this Subdivision, treat a *CGT asset as if it were an active asset of an entity at a particular time, if subsection 152-40(3) would have been satisfied for the asset at that time had paragraph 152-40(3)(a) only required the asset to be:
(a) a *share in a company; or
(b) an interest in a trust.
Note:
This enables shares and interests in foreign entities to be active assets for the purposes of this Subdivision.
118-570(3)
Subsections (1) and (2) do not limit section 152-40 (about active assets).
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