Document ID: chunk:federal_register_of_legislation:C2010C00622:clause:1_21
Version: federal_register_of_legislation:C2010C00622
Segment Type: clause
Provision Reference: sch 1 cl 21
Character Range: 14822–15721

21  Subsection 434(1A)
Repeal the subsection, substitute:

 (1A) In working out the gross turnover of a company of a statutory accounting period, assume that the amounts shown in the company's recognised accounts, as mentioned in paragraphs (1)(b) and (c), for that period had been worked out by also including:
 (a) as gains derived by the company in that period—capital gains the company would have made; and
 (b) as losses incurred by the company in that period—capital losses the company would have made;
in that period because of CGT event J1, if the assumptions in paragraphs 383(a) to (c) had applied.

Note 1: CGT event J1 is about companies ceasing to be related after a roll‑over.

Note 2: Basically, the effect of the assumptions in paragraphs 383(a) to (c) is that the company concerned is taken to be a taxpayer and a resident and CGT event J1 may therefore be taken to have happened.