Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-D - Lost policy holders trust  

Effects of CGT events happening to interests and assets in trust

SECTION 316-170   Roll-over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust  

316-170(1)    
This section applies in relation to a *CGT event if:

(a) the CGT event happens in relation to an asset that:

(i) is a *share or a right to *acquire one or more shares; and

(ii) is held by the trustee of the lost policy holders trust on behalf of a beneficiary of the lost policy holders trust; and

(b) the CGT event happens because the beneficiary of the lost policy holders trust either:

(i) is transferred the asset by the trustee; or

(ii) becomes absolutely entitled to the asset.

Consequence for trustee

316-170(2)    
Disregard a *capital gain or *capital loss the trustee makes from the *CGT event.

Consequences for beneficiary

316-170(3)    
The *cost base and *reduced cost base of the asset in the hands of the trustee of the lost policy holders trust just before the *CGT event becomes the first element of the cost base and reduced cost base of the asset in the hands of the beneficiary of the lost policy holders trust.

Note:

Section 316-105 affects the cost base of the asset in the hands of the trustee of the lost policy holders trust if the asset is covered by section 316-110 .

316-170(4)    
The beneficiary of the lost policy holders trust is taken to have *acquired the asset when the trustee acquired it.