INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZCA   INFORMATION ABOUT FAMILY TRUSTS WITH INTERESTS IN COMPANIES: FIRST CASE  

160ZCA(1)   Notice about company.  

The Commissioner may give a company a notice in accordance with section 160ZCB if the requirements of this section are met.

160ZCA(2)   Company must have applied a net capital loss in certain circumstances.  

In determining in its return of income for the 1997-98 year of income whether a net capital gain accrued to the company, the company must have applied a net capital loss that is to be taken to have been incurred in the 1996-97 year of income where, under subsection 160ZC(5) , it would not have been allowed to apply the loss if it did not meet the condition in section 165-12 of the Income Tax Assessment Act 1997 , as applied on the assumption mentioned in subsection 160ZC(5) of this Act.

160ZCA(3)   Role of family trust.  

The Commissioner must be satisfied that the company meets the conditions in section 165-12 of the Income Tax Assessment Act 1997 , as applied on the assumption mentioned in subsection 160ZC(5) of this Act, but it would not do so unless one or more trusts were family trusts (within the meaning of section 272-75 of Schedule 2F).

160ZCA(4)   Non-resident trust.  

When the Commissioner gives the notice, for at least one of the family trusts:

(a) a trustee of the trust must be a non-resident; or

(b) the central management and control of the trust must be outside Australia.

160ZCA(5)   When notice must be given.  

The Commissioner must give the notice before the later of:

(a) 5 years after the 1997-98 year of income; and

(b) the end of the period during which the company is required by section 262A to retain records in relation to that year of income.