Document ID: chunk:federal_register_of_legislation:C2010C00646:clause:4_10:p3
Version: federal_register_of_legislation:C2010C00646
Segment Type: clause
Provision Reference: sch 4 cl 10 (pt 3/4)
Character Range: 19695–22341

is not a capital gain that could not be a *discount capital gain had it been made by an individual because of section 115‑40 or 115‑45; and
 (e) that is included in the *net capital gain of the company; and
 (f) that is reflected in the taxable income of the company for the income year in which the company had the net capital gain.

Note 1: The listed investment company must be able to demonstrate that at least some part of the LIC capital gain, whether made by the company itself or by another listed investment company, remains after claiming deductions and losses against that income for the income year.

Note 2: Section 115‑30 may affect the date of acquisition of a CGT asset for the purposes of sections 115‑25, 115‑40 and 115‑45.

 (2) However, a *capital gain made by a company is not a LIC capital gain if the company:
 (a) became a *listed investment company after 1 July 2001; and
 (b) *acquired the *CGT asset concerned before the day on which it became a listed investment company.

 (3) In applying subsection (2), a *CGT asset is treated as if it had been *acquired by the company before it became a *listed investment company if the asset would otherwise be treated as being acquired after that time because of one of these provisions:
 (a) section 70‑110 (about trading stock);
 (b) Subdivision 124‑E or 124‑F (replacement asset roll‑overs for exchange of *shares, units, rights or options);
 (c) Subdivision 126‑B (same‑asset roll‑over for transfers within a wholly‑owned group).

115‑290  Meaning of listed investment company

 (1) A listed investment company is a company:
 (a) that is an Australian resident; and
 (b) *shares in which are listed for quotation on the official list of the Australian Stock Exchange Limited or of a body corporate that is approved as a stock exchange under section 769 of the Corporations Act 2001; and
 (c) at least 90% of the *market value of whose *CGT assets consists of investments permitted by subsection (4).

 (2) A company is also a listed investment company if:
 (a) it is a 100% subsidiary of a company that is a *listed investment company because of subsection (1); and
 (b) the subsidiary would be a listed investment company because of subsection (1) if it were able to comply with paragraph (1)(b).

 (3) This Subdivision applies to a company that does not comply with paragraph (1)(c) as if it did comply if the failure:
 (a) was of a temporary nature only; and
 (b) was caused by circumstances outside its control.

 (4) The permitted investments are:
 (a) *shares, units, options, rights or similar interests to the extent permitted by subsections (5), (6), (7) and (8);