Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/17)
Character Range: 237363–240481

(3) If all the *CFC's assets were *disposed of at the residency change time for their market values in the circumstances mentioned in subparagraph 457(2)(a)(i) of the Income Tax Assessment Act 1936:

 (a) *distributable profits of the CFC of a particular amount (the distributable profit amount) would be created, or its distributable profits would be increased by an amount (also the distributable profit amount); and

 (b) the CFC would have made a profit (the CFC asset profit) on the disposal of the CFC asset.

 (4) The *capital proceeds are reduced by:

where:

total asset profits is the sum of the profits that the CFC would have made if all its assets were *disposed of at the residency change time for their market values (ignoring disposals that would not result in a profit).

Increase in capital proceeds

 (5) If all the *CFC's assets were *disposed of at the residency change time for their market values in the circumstances mentioned in subparagraph 457(2)(a)(i) of the Income Tax Assessment Act 1936:

 (a) the *distributable profits of the CFC would be reduced by an amount (the distributable profit reduction amount); and

 (b) the CFC would have made a loss (the CFC asset loss) on the disposal of the CFC asset.

 (6) The *capital proceeds are increased by:

where:

total asset losses is the sum of the losses that the CFC would have made if all its assets were *disposed of at the residency change time for their market values (ignoring disposals that would not result in a loss).

Note: This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936.

Division 118—Exemptions

Table of Subdivisions

 Guide to Division 118

118‑A General exemptions

118‑B Main residence

118‑C Goodwill

118‑D Insurance and superannuation

118‑E Units in pooled superannuation trusts

Guide to Division 118

118‑1  What this Division is about

      This Division sets out various exemptions for many capital gains and losses.

      There are other provisions that provide exemptions from CGT liability, for example, Division 104 (exceptions from CGT events) and Division 50 (exempt entities).

Note: There are also these exemptions in the Income Tax Assessment Act 1936:

                  * section 23AH (about foreign branch gains and losses of companies);

                  * section 24B (about External Territories);

                  * section 26BC (about securities lending arrangements);

                  * section 27CB (about eligible termination payments);

                  * section 116DK (about life insurance companies);

                  * section 121AS (about demutualisation of insurance companies);

                  * section 121EL (about offshore banking units);

                  * section 159GZZZN (about buy‑back and cancellation of shares);

                  * section 315 (about superannuation and related businesses);

                  * section 408 (about calculating the attributable income of a CFC).

Subdivision 118‑A—General exemptions

Table of sections

Exempt