Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p38
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 38/58)
Character Range: 2392639–2395171

a material decrease in the value of its shares in company X as a result of the shift. Z Nominees needs records showing:
• the essential elements of the relevant scheme;
• the date when the share value shift occurred;
• the amounts of the decreases and increases in the market values of all shares involved in the scheme;
• if shares are issued at a discount under the scheme, the amount of the discount;
• the cost bases and market values of the shares that decreased in value.
Note 2: There is an administrative penalty if you do not keep records as required by this Division: see section 288‑25 in Schedule 1 to the Taxation Administration Act 1953.
 (2) The records must be in English, or be readily accessible and convertible into English. They must show what is described in this section. (They show something if they include whatever material is necessary for that thing to be easily identified or worked out.)
 (3) They must show the nature of the act, transaction, event or circumstance, the day when it happened or arose and:
 (a) in the case of an act—who did it; and
 (b) in the case of a transaction—who were the parties to it.
 (4) They must show details (including relevant amounts) of how the act, transaction, event or circumstance is relevant (or can reasonably be expected to be relevant) to working out whether you have made a *capital gain or *capital loss from a *CGT event.
 (5) If the necessary records of an act, transaction, event or circumstance do not already exist, you must reconstruct them or have someone else reconstruct them.
Example: Your capital gain or capital loss from a CGT event may depend on the market value of property at a particular time. To record that market value properly, you may need to get a valuation done.
Penalty: 30 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
 (6) An offence under this section is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.

121‑25  How long you must retain the records
 (1) You must retain records that section 121‑20 requires you to keep.
 (2) You must retain them until the end of 5 years after it becomes certain that no *CGT event (or no further *CGT event) can happen such that the records could reasonably be expected to be relevant to working out whether you have made a *capital gain or *capital loss from the event.
 (2A) An offence under this section is an offence of strict liability.
Note: For strict liability, see section 6.1 of the