Income Tax Assessment Act 1997
View history note
Hide history noteTo avoid the consequences in section 149-70 , the following condition must be complied with.
149-60(1)
On the basis solely of the evidence given to the Commissioner under subsection 149-55(1), the Commissioner must be satisfied that, or think it reasonable to assume that, at the end of the *test day, *majority underlying interests in the asset were had by *ultimate owners who also had *majority underlying interests in the asset at the end of the starting day. The starting day is:
(a) a day the entity chooses under subsection (2); or
(b) if no day is so chosen - 19 September 1985.
149-60(2)
The day chosen:
(a) must be no earlier than 1 July 1985 and no later than 30 June 1986; and
(b) must be one the choice of which will allow evidence to be given that enables a reasonable approximation of the *ultimate owners who had *underlying interests in the assets of the entity at the end of 19 September 1985.
How unidentified owners are treated
149-60(3)
So far as the evidence does not show who had *underlying interests in the asset at the end of the *starting day, the evidence must be treated on the assumption that those interests were then had by *ultimate owners who did not have *underlying interests in the asset at the end of the *test day.
New owner standing in the shoes of former owner
149-60(4)
Subsection (5) affects how the evidence must be treated if an *ultimate owner (the new owner ) has acquired a percentage (the acquired percentage ) of the *underlying interests in the asset because of an event described in column 2 of an item in the table. The former owner is the entity described in column 3 of that item.
| Events leading to new owner standing in for former owner | ||
| Item | For this kind of event: | The former owner is: |
| 1 | *CGT event A1 or B1 if there is a roll-over under Subdivision 126-A (about marriage or relationship breakdowns) for the event | the entity that, immediately before the event happened, owned the *CGT asset to which the event relates |
| . | ||
| 2 | the death of a person | that person |
149-60(5)
The evidence must be treated on the assumption that the new owner had (in addition to any other *underlying interests), at any time when the former owner had a percentage (the former owner ' s percentage ) of the *underlying interests in the asset, a percentage of the underlying interests in the asset equal to the acquired percentage, or the former owner ' s percentage at that time, whichever is the less.
Determining the end of a day
149-60(6)
For the purposes of this section, the end of a day is determined according to legal time in the place where the records of ownership of shares or other interests in the entity are kept.
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