Taxation Determination TD 93/171







This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). | 1. The general position covering the capital gains consequences of non assessable unit trust distributions is set out in TD 93/169. | 2. Subsection 160ZM(3) of the Income Tax Assessment Act 1936 covers the situation where a taxpayer receives a non assessable distribution which exceeds the indexed cost base. In this situation, there will be two consequences:- | 3. Any subsequent non assessable distribution will constitute a capital gain. | Example: Indexed cost base before distribution $8,500 | Non assessable distribution $9,000 | The non assessable distribution is an "adjusted payment" as defined in subsection 160ZM(3A). | A capital gain of $500 arises upon distribution. | Indexed cost base after distribution will be nil. | Commissioner of Taxation 2/9/93 | Previously issued as Draft TD 93/D133


Related rulings: TD 93/169 TD 93/170
Legislative references: ITAA 160ZM(2)(a) ITAA 160ZM(2)(b) ITAA 160ZM(3) ITAA 160ZM(3A)
Subject references: Capital gains tax unit trust distributions