Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 394.30

  (1)   This section applies if:

  (a)   you hold a * forestry interest in a * forestry managed investment scheme otherwise than as an * initial participant in the scheme; and

  (b)   at least one of these conditions is satisfied:

  (i)   you can deduct or have deducted an amount for an income year under section   394 - 10 in relation to the forestry interest;

  (ii)   you could deduct an amount for an income year under section   394 - 10 if you had paid the amount under the scheme in that year; and

  (c)   a * CGT event happens in relation to the forestry interest, other than a CGT event that happens in respect of thinning.

  (2)   Your assessable income for the income year in which the * CGT event happens includes the lesser of the following:

  (a)   the * market value of the forestry interest (worked out as at the time of the event);

  (b)   the amount (if any) by which the * total forestry scheme deductions in relation to the forestry interest exceeds the * incidental forestry scheme receipts in relation to the forestry interest.

  (3)   The total forestry scheme deductions in relation to the * forestry interest is the total of each amount that you can deduct or have deducted under section   394 - 10 for each income year in relation to the forestry interest.

  (4)   The incidental forestry scheme receipts in relation to the * forestry interest is the total of each amount that you have received under the scheme in each income year in relation to the forestry interest for a reason otherwise than because of the * CGT event.

  (5)   However, if you still hold the forestry interest despite the * CGT event, work out the amount included in your assessable income under subsection   (2) using this formula (instead of using the amount worked out under subsection   (2)):

  (6)   If this section has operated previously in relation to the * forestry interest, disregard an amount for the purposes of subsections   (3) and (4) to the extent that it has already been reflected in your assessable income under that previous operation in relation to the forestry interest.

  (7)   These provisions do not apply to the * CGT event:

  (a)   section   6 - 5 (about * ordinary income);

  (b)   any other provision that includes an amount in assessable income, other than the following:

  (i)   a provision in Part   3 - 1 or 3 - 3;

  (ii)   subsection   (2) of this section;

  (c)   section   8 - 1 (about amounts you can deduct);

  (d)   any other provision that allows you to deduct an amount from your assessable income;

  (e)   section   118 - 20.

  (8)   However, the provisions referred to in subsection   (7) can apply to the * CGT event if a * capital gain or * capital loss from the event is disregarded because of section   118 - 25.

  (9)   Just before the * CGT event, increase the * cost base and * reduced cost base of the * forestry interest by the amount included in your assessable income under subsection   (2).