Document ID: chunk:federal_register_of_legislation:C2025C00014:section:401:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 401 (pt 2/3)
Character Range: 1999581–2002256

or the capital proceeds from the CGT event, then the surplus is only to be taken into account to the extent that its grossed‑up amount equals the consideration or those capital proceeds; and
 (d) where there are 2 or more attribution surpluses referred to in paragraph (1)(c) and (after any application of paragraph (b) of this subsection) the sum of their grossed‑up amounts exceeds the consideration in respect of the disposal or the capital proceeds from the CGT event, then:
 (i) if the taxpayer makes an election that for the purposes of this paragraph, a part of each surplus (after any application of paragraph (b)) such that the sum of the grossed‑up amounts of the parts to which the election relates equals the consideration or those capital proceeds—only the part to which the election relates of each surplus is to be taken into account under paragraph (1)(c); or
 (ii) if subparagraph (i) does not apply—only a proportion of each surplus (after any application of paragraph (b)) is to be taken into account under paragraph (1)(c), being the proportion calculated using the formula:

  where:
  consideration means the amount of the consideration or the capital proceeds.
  total grossed‑up surplus means the sum of the grossed‑up amounts of the attribution surpluses (after any application of paragraph (b)).
 (4) An election for the purposes of paragraph (3)(d) must be made on or before the date of lodgment of the eligible taxpayer's return of income for the year of income in which the eligible period ends or within such further period after the lodgment of the return as the Commissioner allows.
 (5) For the purposes of this Act:
 (a) an attribution debit is taken to arise at the time of the disposal under section 372, in relation to the eligible taxpayer, for each attribution account entity (in this section called a surplus entity) in relation to which there is an attribution surplus to which paragraph (1)(c) applies; and
 (b) the amount of the attribution debit is equal to so much of the surplus as is taken into account under paragraph (1)(c); and
 (c) there is no grossed‑up amount in relation to the attribution debit under section 373; and
 (d) an attribution credit equal to the debit is taken to arise, at the time of the disposal or of the CGT event, under section 371 for the eligible CFC in relation to the eligible taxpayer.
 (6A) In determining, for the purposes of this section, whether there was an attribution surplus immediately before a CGT event, and the amount of such a surplus, also take into account any attribution credit that later arises because the CGT event caused section 104‑175 of the Income Tax Assessment Act 1997