Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p14
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 14/40)
Character Range: 69756–72368

part is adjusted to exclude any part of it that is attributable to:

 (a) deductions under Division 43 (about capital works); or

 (b) an amount that is not included in the assessable income of an entity because of:

 (i) section 124ZM or 124ZN (which exempt income arising from *shares in a *PDF) of the Income Tax Assessment Act 1936; or

 (ii) section 159GZZZZE (which exempts certain payments related to infrastructure borrowings) of that Act; or

 (c) proceeds from a *CGT event that happens in relation to *shares in a company that was a *PDF when that event happened.

Note 1: Deductions under Division 10C or 10D of Part III of the Income Tax Assessment Act 1936 (about capital works) are also relevant: see section 104‑72 of the Income Tax (Transitional Provisions) Act 1997.

Note 2: In working out the cost base of the unit or interest, the non‑assessable part does not exclude any part attributable to a deduction under Division 10C or 10D of Part III of the Income Tax Assessment Act 1936 (about capital works) if the payment was made before 18 December 1986: see section 104‑70 of the Income Tax (Transitional Provisions) Act 1997.

Exception

 (8) A *capital gain you make is disregarded if you *acquired the *CGT asset that is the unit or interest before 20 September 1985.

104‑75  Beneficiary becoming entitled to a trust asset: CGT event E5

 (1) CGT event E5 happens if a beneficiary becomes absolutely entitled to a *CGT asset of a trust (except a unit trust or a trust to which Division 128 applies) as against the trustee (disregarding any legal disability the beneficiary is under).

Note: Division 128 deals with the effect of death.

 (2) The time of the event is when the beneficiary becomes absolutely entitled to the asset.

Trustee makes a capital gain or loss

 (3) The trustee makes a capital gain if the market value of the asset (at the time of the event) is more than its *cost base. The trustee makes a capital loss if that market value is less than the asset's *reduced cost base.

Exception for trustee

 (4) A *capital gain or *capital loss the trustee makes is disregarded if it *acquired the asset before 20 September 1985.

Note: There is also an exception for employee share trusts: see section 130‑90.

Beneficiary makes a capital gain or loss

 (5) The beneficiary makes a capital gain if the market value of the asset (at the time of the event) is more than the *cost base of the beneficiary's interest in the trust capital to the extent it relates to the asset.

  The beneficiary makes a capital loss if that market value is less than the