Document ID: chunk:federal_register_of_legislation:C2010C00261:clause:4_2:p3
Version: federal_register_of_legislation:C2010C00261
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 3/4)
Character Range: 29497–32134

amount under subsection 98A(1) of the Income Tax Assessment Act 1936 because it is a beneficiary described in subsection 98(3) of that Act, the company can deduct for the income year the amount of a *capital gain that would be disregarded for it under this section for that year had section 115‑215 of this Act applied to it for that year.

Note 1: Section 98A of the Income Tax Assessment Act 1936 deals with taxing beneficiaries who are foreign residents at the end of an income year.

Note 2: Subsection 98(3) of that Act makes the trustee liable for tax on the share of the income of the trust to which a foreign resident company is presently entitled.

Note 3: Section 115‑215 treats a portion of a trust's capital gain as a capital gain made by a beneficiary, and applies the CGT discount to that portion as if the gain were made directly by the beneficiary.

Subdivision 855‑B—Becoming an Australian resident

Table of sections

855‑45 Individual or company becomes an Australian resident
855‑50 Trust becomes a resident trust
855‑55 CFC becomes an Australian resident

855‑45  Individual or company becomes an Australian resident

 (1) If you become an Australian resident, there are rules relevant to each *CGT asset that you owned just before you became an Australian resident, except an asset:
 (a) that is *taxable Australian property; or
 (b) that you *acquired before 20 September 1985.

Note: This section has effect subject to section 768‑950 (individuals who become Australian residents and are temporary residents immediately after they become Australian residents).

 (2) The first element of the *cost base and *reduced cost base of the asset (at the time you become an Australian resident) is its *market value at that time.

 (3) Also, Parts 3‑1 and 3‑3 apply to the asset as if you had *acquired it at the time you became an Australian resident.

 (4) This section does not apply to a *share or right if:
 (a) it is a *qualifying share or a *qualifying right; and
 (b) you have not made an election under section 139E of the Income Tax Assessment Act 1936 covering the share or right; and
 (c) the *cessation time for the share or right has not occurred.

855‑50  Trust becomes a resident trust

 (1) If a trust becomes a *resident trust for CGT purposes, there are rules relevant to each *CGT asset that the trustee owned just before the trust became a resident trust for CGT purposes, except one:
 (a) that is *taxable Australian property; or
 (b) that the trustee *acquired before 20 September 1985.

 (2) The first element of the *cost base and *reduced cost base of the asset (at the time the trust becomes