Document ID: chunk:federal_register_of_legislation:C2010C00261:clause:4_2:p1
Version: federal_register_of_legislation:C2010C00261
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/4)
Character Range: 24267–27410

2                                                      item 1 does not apply                                                                           the product of:                                                                                                          the product of:
                                                                                                                                                       (a) the sum of the *market values of all the assets of the other entity that are *taxable Australian real property; and  (a) the sum of the market values of all the assets of the other entity that are not taxable Australian real property; and
                                                                                                                                                       (b) the first entity's *direct participation interest in the other entity                                                (b) the first entity's direct participation interest in the other entity

Note: For the purposes of item 2 of the table, it is necessary to work out the market value of any TARP assets and non‑TARP assets in relation to any membership interests held by the other entity before working out the value of the TARP asset and non‑TARP asset held by the first entity.

 (5) For the purposes of this section, disregard the *market value of any asset acquired by the test entity, or by any other entity, if the *acquisition was done for a purpose (other than an incidental purpose) that included ensuring that a *membership interest in any entity would not pass the principal asset test in this section.

855‑35  Reducing a capital gain or loss from a business asset—Australian permanent establishments

 (1) This section applies to a *CGT asset that is *taxable Australian property under item 3 of the table in section 855‑15 because you have used it at any time in carrying on a *business through a permanent establishment (within the meaning of section 23AH of the Income Tax Assessment Act 1936) in Australia.

 (2) The *capital gain or *capital loss you make from a *CGT event in relation to the asset is reduced if you used it in this way for only part of the period from when you *acquired it to when the CGT event happened.

 (3) The gain or loss is reduced by this fraction:

855‑40  Capital gains and losses of foreign residents through fixed trusts

 (1) The purpose of this section is to provide comparable taxation treatment as between direct ownership, and indirect ownership through a *fixed trust, by foreign residents of *CGT assets that are not *taxable Australian property.

 (2) A *capital gain you make in respect of your interest in a *fixed trust is disregarded if:
 (a) you are a foreign resident when you make the gain; and
 (b) the gain is attributable to a *CGT event happening to a *CGT asset of a trust (the CGT event trust) that is:
 (i) the fixed trust; or
 (ii) another fixed trust in which that trust has an interest (directly, or indirectly through a *chain of fixed trusts); and
 (c) either:
 (i) the asset is not *taxable Australian property for the CGT event