Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 106.30

Effect of bankruptcy

  (1)   For the purposes of this Part and Part   3 - 3 (about capital gains and losses) and Subdivision   328 - C (What is a small business entity), the vesting of the individual's * CGT assets in the trustee under the Bankruptcy Act 1966 or under a similar foreign law is ignored.

  (2)   This Part, Part   3 - 3 and Subdivision   328 - C apply to an act done in relation to a * CGT asset of an individual in these circumstances as if the act had been done by the individual (instead of by the trustee etc.):

  (a)   as a result of the bankruptcy of the individual by the Official Trustee in Bankruptcy or a registered trustee, or the holder of a similar office under a * foreign law;

  (b)   by a trustee under a personal insolvency agreement made under Part   X of the Bankruptcy Act 1966 , or under a similar instrument under a foreign law;

  (c)   by a trustee as a result of an arrangement with creditors under that Act or a foreign law.

Example:   A CGT asset of an individual vests in a trustee because of the bankruptcy of the individual. No CGT event happens as a result of the vesting.

  The trustee later sells the CGT asset. Any capital gain or loss is made by the individual, not the trustee.


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