New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (90 of 2002)

Schedule 15   Value shifting

Part 3   Consequential amendment of the Income Tax Assessment Act 1997

Division 1   Amendments

6   After section 104-245

Insert:

104-250 Direct value shifts

(1) CGT event K8 happens if there is a*taxing event generating a gain for a*down interest under section 725-245.

Note: That section sets out some of the CGT consequences of a direct value shift for affected owners of down interests. See also the rest of Division 725.

(2) The time of the event is the*decrease time for the*down interest.

(3) You make a capital gain equal to the gain generated for the taxing event.

Note: You cannot make a capital loss.

(4) If, because of the same*direct value shift, there are 2 or more*taxing events generating a gain that are covered by subsection (1), CGT event K8 happens for each of those taxing events, and you make a separate capital gain for each.

Exceptions

(5) A*capital gain is disregarded if the*down interest is a*pre-CGT asset.