Document ID: chunk:federal_register_of_legislation:C2010C00261:clause:4_2:p4
Version: federal_register_of_legislation:C2010C00261
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 4/4)
Character Range: 31900–34121

purposes, except one:
 (a) that is *taxable Australian property; or
 (b) that the trustee *acquired before 20 September 1985.

 (2) The first element of the *cost base and *reduced cost base of the asset (at the time the trust becomes a *resident trust for CGT purposes) is its *market value at that time.

 (3) Also, Parts 3‑1 and 3‑3 apply to the asset as if the trustee had *acquired it at the time the trust became a *resident trust for CGT purposes.

Exception

 (4) This section does not apply to a trust if, just before it became a *resident trust for CGT purposes, it was a *CFT because of paragraph 342(a) of the Income Tax Assessment Act 1936.

Note: This section is disregarded in calculating the attributable income of a trust: see section 102AAZB of the Income Tax Assessment Act 1936.

855‑55  CFC becomes an Australian resident

 (1) This section applies to a *CFC that stops at a time (the residence change time) being a resident of a *listed country or an *unlisted country and becomes an Australian resident.

 (2) Section 855‑45 does not apply to the *CFC.

 (3) The modifications of Parts 3‑1 and 3‑3 of this Act in sections 411 to 414 of the Income Tax Assessment Act 1936 have the effect they would have, in relation to each *commencing day asset owned by the *CFC at the residence change time, if those modifications were used to work out the taxable income of the CFC rather than its *attributable income.

 (4) However, if a *capital gain on a *commencing day asset of the *CFC (for a period before the residence change time) was subject to tax (within the meaning of Part X of the Income Tax Assessment Act 1936) in a *listed country, the modifications of Parts 3‑1 and 3‑3 of this Act in sections 411 to 414 of the Income Tax Assessment Act 1936 have the effect they would have in relation to the asset if:
 (a) those modifications were used to work out the taxable income of the CFC rather than its *attributable income; and
 (b) the *commencing day of the CFC were the residence change time.

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

Part 2—Other amendments

Income Tax Assessment Act 1997