Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.107G

  (1)   This section applies if:

  (a)   you are a * member of an * AMIT in respect of an income year because you have a * CGT asset that is your unit or your interest in the AMIT; and

  (b)   the CGT asset is a * revenue asset; and

  (c)   the CGT asset is not a * Division   230 financial arrangement.

  (2)   Make the adjustments in subsection   (3) for the purposes of working out an amount included in your assessable income (or working out an amount treated as a deduction) under any of these provisions:

  (a)   sections   6 - 5 (about * ordinary income), 8 - 1 (about amounts you can deduct), 15 - 15 and 25 - 40 (about profit - making undertakings or plans);

  (b)   sections   25A and 52 of the Income Tax Assessment Act 1936 (about profit - making undertakings or schemes).

  (3)   If the * CGT asset's * AMIT cost base net amount for the income year is the excess mentioned in paragraph   104 - 107C(a):

  (a)   in a case where that AMIT cost base net amount exceeds the cost of the asset--reduce the cost of the asset to nil; or

  (b)   otherwise--reduce the cost of the asset by that AMIT cost base net amount.

Note:   If the AMIT cost base net amount exceeds the cost of the asset, see section   104 - 107H.

  (4)   If the * CGT asset's * AMIT cost base net amount for the income year is the shortfall mentioned in paragraph   104 - 107C(b), increase the cost of the asset by that AMIT cost base net amount.

  (5)   The time of the reduction or increase is:

  (a)   unless paragraph   (b) applies--just before the end of the income year; or

  (b)   if a * CGT event happens to the * CGT asset at a time when you hold it before the end of the income year--just before the time of that CGT event.

  (6)   For the purposes of this section and section   104 - 107H, in working out the * CGT asset's * AMIT cost base net amount for the income year, disregard any right that you start to have in the income year if:

  (a)   the right is for you to receive any money or any property from the trustee of the * AMIT; and

  (b)   the right is remuneration or consideration for you providing finance, services, goods or property to the trustee of the AMIT or to another person.

  (7)   For the purposes of section   118 - 20, treat this section as being outside of this Part.

Note:   Section   118 - 20 deals with reducing capital gains if an amount is otherwise assessable.