Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 2/14)
Character Range: 484528–487179

as if the trustee had *acquired it at the time the trust became a *resident trust for CGT purposes.

Exception

 (4) This section does not apply to a trust if, just before it became a *resident trust for CGT purposes, it was a *CFT because of paragraph 342(a) of the Income Tax Assessment Act 1936.

Note: This section is disregarded in calculating the attributable income of a trust: see section 102AAZB of the Income Tax Assessment Act 1936.

136‑50  CFC becomes an Australian resident

 (1) This section applies to a *CFC that stops at a time (the residence change time) being a resident of a *listed country or an *unlisted country and becomes an Australian resident.

 (2) Section 136‑40 does not apply to the *CFC.

 (3) The modifications of this Part and Part 3‑1 in sections 411 to 414 (inclusive) of the Income Tax Assessment Act 1936 have the effect they would have, in relation to each *commencing day asset owned by the *CFC at the residence change time, if those modifications were used to work out the taxable income of the CFC rather than its *attributable income.

 (4) However, if a *capital gain on a *commencing day asset of the *CFC (for a period before the residence change time) was subject to tax (within the meaning of Part X of the Income Tax Assessment Act 1936) in a *listed country, the modifications of this Part and Part 3‑1 in sections 411 to 414 (inclusive) of the Income Tax Assessment Act 1936 have the effect they would have in relation to the asset if:

 (a) those modifications were used to work out the taxable income of the CFC rather than its *attributable income; and

 (b) the *commencing day of the CFC were the residence change time.

Note: This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936.

Division 140—Share value shifting

Table of Subdivisions

 Guide to Division 140

140‑A When is there share value shifting?

140‑B Consequences of share value shifting

Guide to Division 140

140‑1  What this Division is about

      This Division prevents entities from obtaining a capital gains tax advantage from share value shifting schemes. They involve shifting value from one lot of shares to another lot: for example, by issuing new shares.

      It sets out when an entity makes a capital gain under a scheme of this kind and how the cost base and reduced cost base of shares is varied.

140‑5  Map of this Division

Subdivision 140‑A—When is there share value shifting?

Table of sections

140‑10 Shifts in share values
140‑15 What is a share value shift?
140‑20 When is an entity a controller