Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Subsection 165 - 115ZD(1)
After ", a loss", insert "(the realised loss )".
2 Subsection 165 - 115ZD(4)
Repeal the subsection, substitute:
Adjusted unrealised loss worked out under this section
(4) The adjusted unrealised loss referred to in paragraph ( 2)(a) is worked out using this method statement:
Method statement
Step 1. Add up the amount or value of each thing covered by subsection ( 5). (If the total exceeds the realised loss, reduce the total by the excess.)
Step 2. Reduce the step 1 amount by so much of the realised loss as it is reasonable to conclude is attributable to none of these:
(a) a notional capital loss, or a notional revenue loss, that the company has at that last alteration time in respect of a * CGT asset;
(b) a trading stock decrease in relation to that time for a CGT asset that was * trading stock of the company at that time.
Note: If the equity or debt is a revenue asset, the realised loss is different from the loss referred to in subsection ( 1): see subsection ( 9).
3 Paragraph 165 - 115ZD(5)(a)
Repeal the paragraph, substitute:
(a) it is reasonable to conclude that the thing was not attributable to value that is reflected in what would, if that last alteration time had been a * changeover time for the company, be a notional capital gain or notional revenue gain that the company had under section 165 - 115F at that changeover time in respect of a * CGT asset; or
4 At the end of section 165 - 115ZD
Add:
If equity or debt is a revenue asset
(9) If the equity or debt is a * revenue asset at the time of the * realisation event, subsection ( 4) applies on the basis that the realised loss is the total of:
(a) the loss (if any) * realised for income tax purposes by the realisation event happening to the equity or debt in its character as a * CGT asset; and
(b) the loss (if any) realised for income tax purposes by the realisation event happening to the equity or debt in its character as a revenue asset.
Income Tax (Transitional Provisions) Act 1997
5 Subsection 165 - 115ZD(1)
After ", a loss", insert "(the realised loss )".
6 Paragraph 165 - 115ZD(2)(a)
Omit "loss referred to in paragraph ( 1)(a)", substitute "realised loss (see subsection ( 1) or (5), as appropriate, of this section)".
7 At the end of section 165 - 115ZD
Add:
(5) If the equity or debt is a * revenue asset at the time of the * realisation event, subsection ( 2) applies on the basis that the realised loss is the total of:
(a) the loss (if any) * realised for income tax purposes by the realisation event happening to the equity or debt in its character as a * CGT asset; and
(b) the loss (if any) realised for income tax purposes by the realisation event happening to the equity or debt in its character as a revenue asset.
8 Application
The amendments made by this Schedule apply to a time at or after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999.