Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 2/16)
Character Range: 7559945–7562535

the asset as an asset of one of those 2 parties; and
 (ii) a corresponding liability of the other (the other party).
 (3) The 2 entities are either:
 (a) the first entity and the other entity (see subsection 855‑30(3)), if table item 2 in subsection 855‑30(4) applies to those entities; or
 (b) both:
 (i) that first entity or that other entity; and
 (ii) an entity that is a first entity or other entity for the purposes of a related application of subsection 855‑30(3) and table item 2 in subsection 855‑30(4).
 (4) Disregard:
 (a) if the other party is the test entity (see subsection 855‑30(2))—the asset's *market value; or
 (b) otherwise—the percentage of the asset's market value equal to the percentage that is the test entity's *total participation interest in the other party.
Example: The test entity loans money to its wholly‑owned subsidiary. The market value of the loan asset created as an asset of the test entity is disregarded for the purposes of subsection 855‑30(2).

855‑35  Reducing a capital gain or loss from a business asset—Australian permanent establishments
 (1) This section applies to a *CGT asset that is *taxable Australian property under item 3 of the table in section 855‑15 because you have used it at any time in carrying on a *business through a permanent establishment (as mentioned in that item) in Australia.
 (2) The *capital gain or *capital loss you make from a *CGT event in relation to the asset is reduced if you used it in this way for only part of the period from when you *acquired it to when the CGT event happened.
 (3) The gain or loss is reduced by this fraction:

855‑40  Capital gains and losses of foreign residents through fixed trusts
 (1) The purpose of this section is to provide comparable taxation treatment as between direct ownership, and indirect ownership through a *fixed trust, by foreign residents of *CGT assets that are not *taxable Australian property.
 (2) A *capital gain you make in respect of your interest in a *fixed trust is disregarded if:
 (a) you are a foreign resident when you make the gain; and
 (b) the gain is attributable to a *CGT event happening to a *CGT asset of a trust (the CGT event trust) that is:
 (i) the *fixed trust; or
 (ii) another fixed trust in which that trust has an interest (directly, or indirectly through a *chain of trusts, each trust in which is a fixed trust); and
 (c) either:
 (i) the asset is not *taxable Australian property for the CGT event trust at the time of the CGT event; or
 (ii) the asset is an interest in a fixed trust and the conditions in subsections (5), (6),