INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3 - Determination of capital gains and capital losses  

SECTION 160ZCC   INFORMATION ABOUT FAMILY TRUSTS WITH INTERESTS IN COMPANIES: SECOND CASE  

160ZCC(1)   Notice about company.  

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

160ZCC(2)   Net capital loss must have been applied in certain circumstances.  

In determining whether a net capital gain accrued to the company for the 1997-98 year of income, a net capital loss that is to be taken to have been incurred in respect of the 1996-97 year of income must have been applied, where subsection 160ZC(5) would have prevented it from being applied but for the application of subsection 175-10(2) or 175-15(2) of the Income Tax Assessment Act 1997 , as applied on the assumption mentioned in subsection 160ZC(5) of this Act.

160ZCC(3)   Role of family trust.  

A family trust (within the meaning of section 272-75 of Schedule 2F) must have been:

(a) one of the continuing shareholders mentioned in subsection 175-10(2) of the Income Tax Assessment Act 1997 , as applied on the assumption mentioned in subsection 160ZC(5) of this Act; or

(b) the person who had the shareholding interest mentioned in subsection 175-15(2) of the Income Tax Assessment Act 1997 , as so applied;

as the case requires.

160ZCC(4)   Non-resident trust.  

When the Commissioner gives the notice:

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

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

160ZCC(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.