Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 1/2)
Character Range: 7551573–7554287

5                                                A *CGT asset that is covered by subsection 104‑165(3) (choosing to disregard a gain or loss on ceasing to be an Australian resident)

Note 1: An asset is also taxable Australian property if it was acquired by a company after 28 January 1988 and before 26 May 1988 from a foreign resident as a result of a disposal for which there was a roll‑over under section 160ZZN or 160ZZO of the Income Tax Assessment Act 1936: see section 136‑25 of the Income Tax (Transitional Provisions) Act 1997.
Note 2: Payments may need to be made to the Commissioner for acquisitions of some kinds of taxable Australian property if foreign residents are involved (see Subdivision 14‑D in Schedule 1 to the Taxation Administration Act 1953).

855‑16  Meaning of permanent establishment article
  A permanent establishment article is:
 (a) Article 5 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or
 (b) a corresponding provision of another *international tax agreement.

855‑20  Taxable Australian real property
  A *CGT asset is taxable Australian real property if it is:
 (a) real property situated in Australia (including a lease of land, if the land is situated in Australia); or
 (b) a *mining, quarrying or prospecting right (to the extent that the right is not real property), if the *minerals, *petroleum or quarry materials are situated in Australia.

855‑25  Indirect Australian real property interests
 (1) A *membership interest held by an entity (the holding entity) in another entity (the test entity) at a time is an indirect Australian real property interest at that time if:
 (a) the interest passes the *non‑portfolio interest test (see section 960‑195):
 (i) at that time; or
 (ii) throughout a 12 month period that began no earlier than 24 months before that time and ended no later than that time; and
 (b) the interest passes the principal asset test in section 855‑30 at that time.
 (2) For the purposes of subsection (1), in working out whether the interest passes the *non‑portfolio interest test and the principal asset test in section 855‑30:
 (a) apply section 350 of the Income Tax Assessment Act 1936 as if the words ", or is entitled to acquire," (wherever occurring) were omitted; and
 (b) apply section 351 of that Act as if:
 (i) the words ", or that the beneficiary is entitled to acquire" (wherever occurring) were omitted; and
 (ii) the words ", or that the entity is entitled to acquire" in paragraph 351(2)(d) were omitted.
 (3) The first element of the *cost base and *reduced cost base of a *CGT asset on 10 May 2005 is the *market value of the asset on that day if, on that day:
 (a) the CGT