Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 12/22)
Character Range: 2173207–2176060

its control.
 (4) The permitted investments are:
 (a) *shares, units, options, rights or similar interests to the extent permitted by subsections (5), (6), (7) and (8); or
 (b) financial instruments (such as loans, debts, debentures, bonds, promissory notes, futures contracts, forward contracts, currency swap contracts and a right or option in respect of a share, security, loan or contract); or
 (c) an asset whose main use by the company in the course of carrying on its *business is to *derive interest, an annuity, rent, royalties or foreign exchange gains unless:
 (i) the asset is an intangible asset and has been substantially developed, altered or improved by the company so that its *market value has been substantially enhanced; or
 (ii) its main use for deriving rent was only temporary; or
 (d) goodwill.
 (5) The company can own a *100% subsidiary if the subsidiary is a listed investment company because of subsection (2).
 (6) The company can own (directly or indirectly) any percentage of another *listed investment company that is not the company's *100% subsidiary.
 (7) Otherwise, the company cannot own (directly or indirectly) more than 10% of another company or trust.
 (8) In working out whether a company indirectly owns any part of another company or trust:
 (a) disregard any ownership it has indirectly through a *listed public company or a *publicly traded unit trust; and
 (b) if the company owns not more than 50% of another *listed investment company—disregard any ownership it has indirectly through the other company.

115‑295  Maintaining records
  A *listed investment company must maintain records showing the balance of its *LIC capital gains available for distribution.

Division 116—Capital proceeds

Guide to Division 116

116‑1  What this Division is about
      This Division tells you how to work out what the capital proceeds from a CGT event are. You need to know this to work out if you made a capital gain or loss from the event.

Table of sections
116‑5 General rules
116‑10 Modifications to general rules

General rules
116‑20 General rules about capital proceeds

Modifications to general rules
116‑25 Table of modifications to the general rules
116‑30 Market value substitution rule: modification 1
116‑35 Companies and trusts that are not widely held
116‑40 Apportionment rule: modification 2
116‑45 Non‑receipt rule: modification 3
116‑50 Repaid rule: modification 4
116‑55 Assumption of liability rule: modification 5
116‑60 Misappropriation rule: modification 6

Special rules
116‑65 Disposal etc. of a CGT asset the subject of an option
116‑70 Option requiring both acquisition and disposal etc.
116‑75 Special rule for CGT event happening to a lease
116‑80 Special rule if CGT asset is shares or an interest in a trust
116‑85 Section 47A of 1936 Act applying to rolled‑over asset
116‑95 Company