INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 2 - Application  

SECTION 160U   TIME OF DISPOSAL AND ACQUISITION  

160U(1)   [Scope of section]  

Subject to the provisions of this Part other than this section, where an asset has been acquired or disposed of, the time of acquisition or disposal for the purposes of this Part shall be ascertained in accordance with this section.

160U(2)   [Later subsections take precedence to earlier subsections]  

If the time of acquisition or disposal as ascertained under a subsection of this section is different from the time of acquisition or disposal as ascertained under a subsequent subsection of this section, the time of acquisition or disposal shall be taken to have been the time of acquisition or disposal as ascertained under that subsequent subsection.

160U(3)   [Acquisition or disposal under contract]  

Where the asset was acquired or disposed of under a contract, the time of acquisition or disposal shall be taken to have been the time of the making of the contract.

160U(4)   [Acquisition or disposal not under contract]  

Where the asset was acquired or disposed of otherwise than under a contract, the time of acquisition or disposal shall be taken to have been the time when the change in the ownership of the asset that constituted or gave rise to the acquisition or disposal occurred.

160U(5)   [Deemed time of acquisition under subsec 160M(5)(b)]  

If paragraph 160M(5)(b) applies to the construction or creation of the asset, the asset is taken to have been acquired as mentioned in that paragraph when the construction of the asset commenced or when the work on, or work that resulted in, the creation of the asset commenced.

160U(6)   [Deemed time of acquisition or disposal in other cases]  

If paragraph 160M(5)(c) , 160M(6A)(a) or (b) or 160M(6B)(a) or subsection 160M(6BB) applies to the construction or creation of the asset:

(a) if the asset was constructed or created under a contract - the asset is taken:

(i) in a paragraph 160M(5)(c) or 160M(6B)(a) case - to have been acquired as mentioned in that paragraph at the time of making of the contract; and

(ii) in a paragraph 160M(6A)(a) or subsection 160M(6BB) case - to have been acquired as mentioned in that paragraph or subsection immediately before the time of making of the contract; and

(iii) in a paragraph 160M(6A)(b) or subsection 160M(6BB) case - to have been disposed of as mentioned in that paragraph or subsection at the time of making of the contract; and

(b) in any other case - the asset is taken:

(i) in a paragraph 160M(5)(c) or 160M (6B)(a) case - to have been acquired as mentioned in that paragraph at the time of the vesting referred to in paragraph 160M(5)(c) or in paragraph 160M(6)(b) , as the case requires; and

(ii) in a paragraph 160M(6A)(a) case - to have been acquired as mentioned in that paragraph immediately before the time of the vesting referred to in paragraph 160M(6)(b) ; and

(iii) in a paragraph 160M(6A)(b) case - to have been disposed of as mentioned in that paragraph at the time of the vesting referred to in paragraph 160M(6)(b) ; and

(iv) in a subsection 160M(6BB) case - to have been acquired as mentioned in paragraph 160M(6BB)(a) at the time of the creation referred to in paragraph 160M(6BA)(b) , and to have been disposed of as mentioned in paragraph 160M(6BB)(c) immediately after that time.

160U(6A)   [Time of acquisition or disposal where none provided]  

Where:

(a) a provision of this Part, other than a provision of section 160M ( ``the relevant section 160M provision'' ) referred to in subsection (5) or (6) of this section, applies to the construction or creation of an asset to deem there to have been an acquisition or disposal of the asset; and

(b) because the relevant section 160M provision does not apply, neither subsection (5) nor subsection (6) of this section applies; and

(c) the provision of this Part does not state the time at which the acquisition or disposal is taken to have occurred;

then the acquisition or disposal is taken to have occurred at the time that would have been applicable under subsection (5) or (6) of this section if the relevant section 160M provision had applied.

160U(7)   [Use and enjoyment]  

Where the acquisition or disposal of the asset occurred as a result of a transaction referred to in paragraph 160M(3)(d) , the time of acquisition or disposal shall be taken to have been the time when the use and enjoyment of the asset was first obtained by the person mentioned in that paragraph.

160U(8)   [Compulsory acquisition]  

Where the asset was disposed of as a result of the exercise of a power of compulsory acquisition conferred by a law, the time of disposal shall be taken to have been the time when the earliest of the following events occurred:

(a) an amount or an asset by way of compensation for the acquisition was received;

(b) the person acquiring the asset became the owner of the asset;

(c) the person acquiring the asset entered on the asset under the powers conferred on the person by that law;

(d) the person acquiring the asset took possession of the asset under the powers conferred on the person by that law.

160U(9)   [Loss or destruction]  

Where the asset is taken to have been disposed of by reason of the loss or destruction of the asset, the time of disposal shall be taken to have been:

(a) if an amount is or amounts are, or an asset is or assets are, received in respect of the loss or destruction - the time when the amount or the first amount, or the asset or the first asset, was received; or

(b) in any other case - the time when the loss was discovered or the destruction occurred, as the case may be.

160U(10)   [Amendment of assessment]  

Section 170 does not prevent the amendment of an assessment at any time to give effect to subsection (3) or (8) where the time of an acquisition or disposal is taken to have been before the making of the assessment.