Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 82KZMGB

  (1)   This section applies if:

  (a)   a taxpayer holds an interest in an agreement mentioned in section   82KZMG as an initial participant in the agreement; and

  (b)   at least one of these conditions is satisfied:

  (i)   the taxpayer can deduct or has deducted an amount for a year of income in relation to the interest;

  (ii)   the condition in subparagraph   (i) would be satisfied if section   82KZMGA were disregarded; and

  (c)   subsection   82KZMG(1) applies to the timing of the deduction (or would apply if section   82KZMGA were disregarded); and

  (d)   a CGT event happens in relation to the interest, other than a CGT event that happens in respect of thinning.

  (2)   The taxpayer's assessable income for the year of income in which the CGT event happens includes:

  (a)   if, as a result of the CGT event, the taxpayer no longer holds the interest--the market value of the interest (worked out as at the time of the event); or

  (b)   otherwise--the decrease (if any) in the market value of the interest as a result of the CGT event.

  (3)   Any amount that the taxpayer actually receives because of the CGT event is not included in the taxpayer's assessable income (nor is it exempt income).