Taxation Determination

TD 93/44A - Addendum

Income tax: capital gains: what is the amount of the consideration in respect of the disposal of an asset by a taxpayer where consideration is actually received but an amount is later paid out by way of damages?

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ADDENDUM

The Income Tax Assessment Act 1997 now allows capital proceeds to be reduced by any amount repaid, to the extent that a deduction is not allowable for the repayment (section 116-50). This Addendum reflects this change in the law by specifying that this Determination does not apply to CGT events that happen after the beginning of the 1998-99 income year.

This Addendum amends Taxation Determination TD 93/44 as follows:

1. After paragraph 1 insert:

'2. This Determination does not apply to the calculation of capital proceeds from CGT events under the Income Tax Assessment Act 1997 that happen after the beginning of the 1998-99 income year. However, it continues to apply to disposals of assets under the Income Tax Assessment Act 1936 occurring before the beginning of the 1998-99 income year.'

Commissioner of Taxation
1 July 1998

References

ATO references:
NO NAT 98/561-9
BO BRI CG ITD 98