Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 17/22)
Character Range: 2187735–2190534

the capital proceeds for the cancellation will be what you actually received.
 (2C) Subsection (2) does not apply if:
 (a) you are a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; and
 (b) the *capital proceeds from the *CGT event exceed the *market value of the *CGT asset; and
 (c) assuming the capital proceeds were your *statutory income, the proceeds would be *non‑arm's length income.

Market value for CGT events C2 and D1
 (3) Subsection (1) does not apply to:
 (a) these examples of *CGT event C2:
 (i) the expiry of a *CGT asset you own;
 (ii) the cancellation of your *statutory licence; or
 (b) *CGT event D1 (about creating contractual or other rights).
 (3A) If you need to work out the *market value of a *CGT asset that is the subject of *CGT event C2, work it out as if the event had not occurred and was never proposed to occur.
Example: A company cancels shares you own in it. You work out the market value of the shares by disregarding the cancellation.

CGT assets the subject of certain events
 (4) To avoid doubt, the *CGT asset that is the subject of a *CGT event specified in this table is the asset so specified.

*CGT assets the subject of certain events
For this *CGT event:
                                           This asset is the subject of the event:
D1                                         the right you created
D2                                         the option you granted
D3                                         the right you granted
E8                                         your interest or part interest in the trust capital
K6                                         the *share or interest you *acquired before 20 September 1985

Carried interests
 (5) This section does not apply to *CGT event A1 or C2 to the extent that the CGT event is constituted by ceasing to own:
 (a) the *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP; or
 (b) an entitlement to receive a payment of such a carried interest.
Note: This section does not apply to ESS interests acquired under employee share schemes: see subsection 130‑80(4).

116‑35  Companies and trusts that are not widely held

Coverage
 (1) A company is covered by this section if subsection (3) or (5) applies to the company.
 (2) A unit trust is covered by this section if subsection (4) or (5) applies to the trust.

Concentrated ownership
 (3) This subsection applies to a company if an individual owns, or up to 20 individuals own between them, directly or indirectly (through one or more interposed entities) and for their own benefit, *shares in the company:
 (a) carrying *fixed entitlements to at least 75% of the company's income or at least 75% of the company's capital; or