Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p37
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 37/40)
Character Range: 1912785–1915369

Working out capital gain or loss for CGT event K7: pooled assets
 (1) You make a capital gain if the *depreciating asset's *termination value is more than its *cost. The amount of the *capital gain is:
where:
taxable use fraction is the taxable use percentage (expressed as a fraction) that you estimated for the asset when you allocated it to the pool.
Note: The CGT concepts of cost base and capital proceeds are not relevant for this event.
 (2) You make a capital loss if the *depreciating asset's *cost is more than its *termination value. The amount of the *capital loss is:
where:
taxable use fraction has the same meaning as in subsection (1).
 (3) In applying subsection (1) or (2), reduce the *termination value of the *depreciating asset by so much of an amount misappropriated by your employee or *agent (whether by theft, embezzlement, larceny or otherwise) as represents an amount applicable to you under:
 (a) item 8 of the table in subsection 40‑300(2); or
 (b) item 1, 3, 4 or 6 of the table in subsection 40‑305(1);
in relation to the *balancing adjustment event.
 (4) If you later receive an amount as *recoupment of all or part of the amount misappropriated, the amount applicable under subsection (3) is increased by the amount received.
 (5) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this section for an income year if:
 (a) you discover the misappropriation, or you receive an amount as *recoupment of all or part of the amount misappropriated, after you lodged your *income tax return for the income year; and
 (b) the amendment is made at any time during the period of 4 years starting immediately after you discover the misappropriation or receive the amount.

104‑250  Direct value shifts: CGT event K8
 (1) CGT event K8 happens if there is a *taxing event generating a gain for a *down interest under section 725‑245.
Note: That section sets out some of the CGT consequences of a direct value shift for affected owners of down interests. See also the rest of Division 725.
 (2) The time of the event is the *decrease time for the *down interest.
 (3) You make a capital gain equal to the gain generated for the taxing event.
Note: You cannot make a capital loss.
 (4) If, because of the same *direct value shift, there are 2 or more *taxing events generating a gain that are covered by subsection (1), CGT event K8 happens for each of those taxing events, and you make a separate capital gain for each.

Exceptions
 (5) A *capital gain is disregarded if the *down