INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160T   DISPOSAL OF TAXABLE AUSTRALIAN ASSETS  

160T(1)   [Deemed disposal]  

For the purposes of this Part, a disposal of an asset shall be deemed to have been a disposal of a taxable Australian asset if:

(a) the asset comprised land or a building situated in Australia;

(b) the asset has at any time been used by the taxpayer in carrying on a trade or business wholly or partly at or through a permanent establishment in Australia;

(c) the asset comprised a share, or an interest in a share, in a company that, in relation to the year of income of the company in which the disposal took place, was a resident of Australia and was a private company;

(d) the asset comprised a share, or an interest in a share, in a company that, in relation to the year of income of the company in which the disposal took place, was a resident of Australia and was not a private company and at any time during so much of the period of 5 years immediately preceding the disposal as occurred after 19 September 1985:

(i) the taxpayer or an associate of the taxpayer was the beneficial owner of; or

(ii) any associates of the taxpayer, or the taxpayer and any associate or associates of the taxpayer, together were the beneficial owners of;

not less than 10%, by value, of the shares of the company (excluding any shares that carried no right to participate beyond a specified amount in a distribution of either profits or capital);

(e) (Omitted by No 48 of 1991)

(f) the asset comprised an interest in a trust estate that was a resident trust estate in relation to the year of income in which the disposal took place;

(g) the asset comprised a unit of a unit trust that, in relation to the year of income of the unit trust in which the disposal took place, was a resident unit trust, and at any time during so much of the period of 5 years immediately preceding the time of the disposal as occurred after 19 September 1985 the taxpayer or an associate of the taxpayer was the beneficial owner of, or any associates of the taxpayer or the taxpayer and any associate or associates of the taxpayer together were the beneficial owners of, not less than 10% of the issued units of the unit trust;

(h) the asset comprised an option or right to acquire an asset referred to in a preceding paragraph of this section;

(j) the asset comprised a share in, or security of, a company and the following conditions are satisfied in relation to the acquisition of the asset by the taxpayer:

(i) the asset was received by the taxpayer as consideration in respect of the disposal (in this paragraph called the ``previous disposal'' ) of another asset by the taxpayer to the company;

(ii) the previous disposal took place after 28 January 1988;

(iii) section 160ZZN , 160ZZNA or 160ZZO applied in respect of the previous disposal;

(iv) at the time of the previous disposal, the taxpayer:

(A) was not a trustee of a trust estate and was not a resident of Australia; or

(B) was a trustee of a trust estate that was not a resident trust estate or of a unit trust that was not a resident unit trust;

(k) the following conditions are satisfied in relation to the acquisition of the asset by the taxpayer:

(i) the taxpayer acquired the asset as a result of a disposal (in this paragraph called the ``previous disposal'' ) in respect of which section 160ZZN or 160ZZO applied;

(ii) the previous disposal was by:

(A) another taxpayer who was not a trustee of a trust estate and was not a resident of Australia; or

(B) a trustee of a trust estate that was not a resident trust estate or of a unit trust that was not a resident unit trust;

(iii) the previous disposal took place after 28 January 1988 and on or before 25 May 1988;

(l) the following conditions are satisfied:

(i) there is a disposal of the asset because paragraph 160M(6A)(b) or subsection 160M(6BB) applies; and

(ii) the asset is not a taxable Australian asset under another paragraph of this section; and

(iii) the consideration in respect of the disposal of the asset was derived from a source in Australia or if there had been such consideration it would have been derived from such a source; or

(m) the following conditions are satisfied:

(i) there is a disposal of the asset because subsection 160M(7) applies; and

(ii) the asset referred to in paragraph 160M(7)(a) is a taxable Australian asset under another paragraph of this section.

160T(2)   [Consideration deemed of income nature]  

If the consideration referred to in subparagraph (1)(l)(iii) is not of an income nature, then for the purpose of determining under that subparagraph whether the consideration was or would have been derived from a source in Australia, it is taken to be of an income nature.