Document ID: chunk:federal_register_of_legislation:C2025C00014:section:25a:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 25A (pt 1/6)
Character Range: 171252–173877

25A  Assessable income to include certain profits
 (1A) This section does not apply in respect of the sale of property acquired on or after 20 September 1985.
 (1B) This section does not apply to a profit arising in the 1997‑98 year of income or a later year of income from the carrying on or carrying out of a profit‑making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997‑98 year of income.
Note: Section 15‑15 (Profit‑making undertaking or plan) of the Income Tax Assessment Act 1997 deals with such a profit.
 (1) The assessable income of a taxpayer shall include profit arising from the sale by the taxpayer of any property acquired by the taxpayer for the purpose of profit‑making by sale, or from the carrying on or carrying out of any profit‑making undertaking or scheme.
 (2) Subject to subsection (3), where:
 (a) after 23 August 1983, a taxpayer sold or sells property (in this subsection referred to as the relevant property) being:
 (i) shares in a private company;
 (ii) an interest in a partnership; or
 (iii) an interest in a private trust estate; and
 (b) at the time of sale of the relevant property:
 (i) the company, partnership or trustee of the trust estate, as the case may be, held property that:
 (A) was acquired for the purpose of profit‑making by sale by the company, partnership or trustee, as the case may be; and
 (B) was not excepted property of the company, partnership or trust estate, as the case may be; or
 (ii) the company, partnership or trustee of the trust estate, as the case may be, held an interest, through one or more interposed companies, partnerships or trusts, in property that:
 (A) was acquired for the purpose of profit‑making by sale by another private company, partnership or trustee of a private trust estate; and
 (B) was not excepted property of that other company, partnership or trust estate, as the case may be;
the taxpayer shall, for the purposes of the application of this Act (including any application of any other provision of this section), be deemed to have acquired the relevant property for the purpose of profit‑making by sale.
 (3) Subsection (2) does not apply in relation to the sale by a taxpayer of property where the Commissioner, having regard to:
 (a) the extent to which the assets of the company, partnership or trust estate, as the case may be, referred to in paragraph (2)(a), immediately before the time of sale, consisted of the property referred to in subparagraph (2)(b)(i) or the interest referred to in subparagraph (2)(b)(ii), as the case may be;
 (b)