Tax Laws Amendment (2006 Measures No. 4) Act 2006 (168 of 2006)

Schedule 4   CGT and foreign residents

Part 3   Consequential amendments

Income Tax Assessment Act 1997

42   Subsection 122-25(7)

Repeal the subsection, substitute:

(7) If you are a trustee of a trust at the time of the trigger event, either:

(a) at that time, the trust must be a *resident trust for CGT purposes and the company must be an Australian resident; or

(b) both of the following requirements must be satisfied:

(i) each *CGT asset must be a CGT asset of the trust that is *taxable Australian property at that time; and

(ii) the shares in the company mentioned in subsection 122-20(1) must be taxable Australian property just after that time.