Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 276.750

  (1)   This section applies if:

  (a)   a trust becomes an AMIT for an income year; and

  (b)   the trustee of the trust made a payment to an entity at a time:

  (i)   on or after 1   July 2011; and

  (ii)   before the start of the income year mentioned in paragraph   (a).

  (2)   Subsection   (3) applies for the purpose of:

  (a)   working out whether CGT event E4 happens because of the payment; and

  (b)   working out the amount (if any) of the entity's capital gain under subsection   104 - 70(4) of the Income Tax Assessment Act 1997 .

  (3)   For the purpose of working out the amount of the non - assessable part mentioned in paragraph   104 - 70(1)(b), treat the following provisions as being in operation at the time the payment was made:

  (a)   sections   104 - 107F and 104 - 107G of the Income Tax Assessment Act 1997 ;

  (b)   any other provision of that Act, to the extent that it relates to the operation of the provisions mentioned in paragraph   (a).

  (4)   Subsection   (3) does not apply to the extent (if any) that the entity, in the income tax return that it lodged for the income year in which the payment was made, included the amount of the payment in its assessable income for that income year.

  (5)   For the purposes of section   118 - 20 of the Income Tax Assessment Act 1997 , treat this section as being in Part   3 - 1 of that Act.

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