Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p13
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 13/14)
Character Range: 510904–513610

acquired the asset before 20 September 1985; and

 (b) the entity was not, immediately before the start of the 1998‑99 income year, taken under:

 (i) subsection 160ZZS(1) of the Income Tax Assessment Act 1936; or

 (ii) Subdivision C of Division 20 of Part IIIA of that Act;

  to have acquired the asset on or after 20 September 1985; and

 (c) the asset has not stopped being a pre‑CGT asset of the entity because of this Division.

Note: There are transitional rules for assets that stopped being pre‑CGT assets under the Income Tax Assessment Act 1936: see section 149‑5 of the Income Tax (Transitional Provisions) Act 1997.

149‑15  Majority underlying interests in a CGT asset

 (1) Majority underlying interests in a *CGT asset consist of:

 (a) more than 50% of the beneficial interests that *ultimate owners have (whether directly or *indirectly) in the asset; and

 (b) more than 50% of the beneficial interests that *ultimate owners have (whether directly or *indirectly) in any *ordinary income that may be *derived from the asset.

 (2) An underlying interest in a *CGT asset is a beneficial interest that an *ultimate owner has (whether directly or *indirectly) in the asset or in any *ordinary income that may be *derived from the asset.

 (3) An ultimate owner is:

 (a) an individual; or

 (b) a company whose *constitution prevents it from making any distribution, whether in money, property or otherwise, to its members; or

 (c) the Commonwealth, a State or a Territory; or

 (d) a municipal corporation; or

 (e) a local governing body; or

 (f) the government of a foreign country, or of part of a foreign country.

 (4) An *ultimate owner indirectly has a beneficial interest in a *CGT asset of another entity (that is not an *ultimate owner) if he, she or it would receive for his, her or its own benefit any of the capital of the other entity if:

 (a) the other entity were to distribute any of its capital; and

 (b) the capital were then successively distributed by each entity interposed between the other entity and the ultimate owner.

 (5) An *ultimate owner indirectly has a beneficial interest in *ordinary income that may be *derived from a *CGT asset of another entity (that is not an *ultimate owner) if he, she or it would receive for his, her or its own benefit any of a *dividend or income if:

 (a) the other entity were to pay that dividend, or otherwise distribute that income; and

 (b) the dividend or income were then successively paid or distributed by each entity interposed between the other entity and the ultimate owner.

Subdivision 149‑B—When asset of non‑public entity stops being a pre‑CGT asset

Table of sections

149‑25