Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.570

  (1)   For the purposes of this Subdivision, treat a * CGT asset as if it were an active asset of an entity at a particular time, if:

  (a)   the entity owns it at that time; and

  (b)   it is either a * share in a company, or an interest in a trust; and

  (c)   at that time, the entity:

  (i)   is a * CGT concession stakeholder of the company or trust; or

  (ii)   if the entity is not an individual--has a * small business participation percentage in the company or trust of at least 20%; and

  (d)   at that time, the company or trust:

  (i)   is carrying on a * business, and has been carrying on a business since the start of the most recent income year ending before that time; and

  (ii)   is not a * subsidiary member of a * consolidated group; and

  (e)   the assessable income of the company or trust for that most recent income year was greater than nil, and at least 80% of that assessable income was:

  (i)   from the carrying on of one or more businesses; but

  (ii)   not * derived (directly or indirectly) from an asset of a kind to which paragraph   152 - 40(4)(d) or (e) applies.

Note:   Paragraphs 152 - 40(4)(d) and (e) refer to financial instruments and assets used to derive interest, annuities, rent, royalties or foreign exchange gains.

  (2)   For the purposes of this Subdivision, treat a * CGT asset as if it were an active asset of an entity at a particular time, if subsection   152 - 40(3) would have been satisfied for the asset at that time had paragraph   152 - 40(3)(a) only required the asset to be:

  (a)   a * share in a company; or

  (b)   an interest in a trust.

Note:   This enables shares and interests in foreign entities to be active assets for the purposes of this Subdivision.

  (3)   Subsections   (1) and (2) do not limit section   152 - 40 (about active assets).