Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 4/29)
Character Range: 2207844–2210817

taken never to have been a *look‑through earnout right because of subsection 118‑565(2), the Commissioner may amend an assessment of a *tax‑related liability for up to 4 years after that time if:
 (a) an entity provides or receives a *financial benefit under the right; and
 (b) the amount of the tax‑related liability:
 (i) depends on that entity's taxable income for the income year in which the *CGT event happens; or
 (ii) was otherwise affected by that right's character as a look‑through earnout right before subsection 118‑565(2) applied.
The tax‑related liability need not be a liability of that entity.
Note: Subsection 118‑565(2) restricts look‑through earnout rights to rights to financial benefits over a period not exceeding 5 years from the end of the income year in which the CGT event happens.
 (5) If, after providing or receiving a *financial benefit under a right referred to in subsection (3) or (4):
 (a) you are dissatisfied with an assessment referred to in that subsection; and
 (b) the Commissioner notifies you that the Commissioner has decided under that subsection not to amend your assessment;
you may object against the assessment, to the extent that it does not take account of that right's character (as a *look‑through earnout right or not such a right), in the manner set out in Part IVC of the Taxation Administration Act 1953.

Division 118—Exemptions

Table of Subdivisions
 Guide to Division 118
118‑A General exemptions
118‑B Main residence
118‑D Insurance and superannuation
118‑E Units in pooled superannuation trusts
118‑F Venture capital investment
118‑G Venture capital: investment by superannuation funds for foreign residents
118‑H Demutualisation of Tower Corporation
118‑I Look‑through earnout rights

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), Division 152 (small business relief) and Division 50 (exempt entities).
Note 1: There are also these exemptions in the Income Tax Assessment Act 1936:
• section 23AH (about foreign branch gains and losses of companies);
• section 26BC (about securities lending arrangements);
• section 121AS (about demutualisation of insurance companies);
• sections 121EL, 121ELA and 121ELB (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).
Note 2: There are also exemptions in Division 54.
Note 3: There are also exemptions in Divisions 315 and 316 (about demutualisation of certain insurers).

Subdivision 118‑A—General exemptions

Table of sections

Exempt assets
118‑5 Cars, motor cycles and valour decorations
118‑10 Collectables and personal use assets
118‑12 Assets used to produce