Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p3
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 3/6)
Character Range: 295297–297972

reduced cost base).

Example 3: CGT event G2 (about shifts in share values) happens involving company X and Greg (a controller (for CGT purposes) of company X). Z Nominees Pty Ltd (an associate of Greg's) suffers a material decrease in the value of its shares in company X as a result of the shift. Z Nominees needs records showing:

                  * the essential elements of the relevant scheme;

                  * the date when the share value shift occurred;

                  * the amounts of the decreases and increases in the market values of all shares involved in the scheme;

                  * if shares are issued at a discount under the scheme, the amount of the discount;

                  * the cost bases and market values of the shares that decreased in value.

 (2) The records must be in English, or be readily accessible and convertible into English. They must show what is described in this section. (They show something if they include whatever material is necessary for that thing to be easily identified or worked out.)

 (3) They must show the nature of the act, transaction, event or circumstance, the day when it happened or arose and:

 (a) in the case of an act—who did it; and

 (b) in the case of a transaction—who were the parties to it.

 (4) They must show details (including relevant amounts) of how the act, transaction, event or circumstance is relevant (or can reasonably be expected to be relevant) to working out whether you have made a *capital gain or *capital loss from a *CGT event.

 (5) If the necessary records of an act, transaction, event or circumstance do not already exist, you must reconstruct them or have someone else reconstruct them.

Example: Your capital gain or capital loss from a CGT event may depend on the market value of property at a particular time. To record that market value properly, you may need to get a valuation done.

Penalty: 30 penalty units.

121‑25  How long you must retain the records

 (1) You must retain records that section 121‑20 requires you to keep.

 (2) You must retain them until the end of 5 years after it becomes certain that no *CGT event (or no further *CGT event) can happen such that the records could reasonably be expected to be relevant to working out whether you have made a *capital gain or *capital loss from the event.

 (3) This section has effect despite subsection 262A(4) of the Income Tax Assessment Act 1936 (which requires records to be retained for a different period).

 (4) However, it is not necessary to retain records:

 (a) if the Commissioner notifies you that you do not need to retain them; or

 (b) for a company that has