Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.170

  (1)   CGT event I2 happens if a trust stops being a * resident trust for CGT purposes.

  (2)   The time of the event is when the trust stops being one.

  (3)   The trustee needs to work out if it has made a * capital gain or a * capital loss for each * CGT asset that it owned (in the capacity as trustee of the trust) just before the time of the event except one that is * taxable Australian property:

  (a)   covered by item   1 or 3 of the table in section   855 - 15; or

  (b)   covered by item   4 of that table because it is an option or right to * acquire a * CGT asset covered by item   1 or 3 of that table.

  (4)   The trustee makes a capital gain if the * market value of the asset (at the time of the event) is more than the asset's * cost base. The trustee makes a capital loss if that market value is less than the asset's * reduced cost base.

  (4A)   If the asset is an * indirect Australian real property interest, or an option or right to acquire such an interest, this Part and Part   3 - 3 apply to the asset as if the first element of the * cost base and * reduced cost base of the asset (just after the time of the event) were its * market value at the time of the event.

  (4B)   Subsection   (4A) does not apply if the * capital gain or * capital loss the trustee makes is disregarded under subsection   (5).

Exception

  (5)   A * capital gain or * capital loss the trustee makes is disregarded if it * acquired the asset before 20   September 1985.

Table of sections

104 - 175   Company ceasing to be member of wholly - owned group after roll - over: CGT event J1

104 - 180   Sub - group break - up

104 - 182   Consolidated group break - up

104 - 185   Change in relation to replacement asset or improved asset after a roll - over under Subdivision   152 - E: CGT event J2

104 - 190   Replacement asset period

104 - 195   Trust failing to cease to exist after roll - over under Subdivision   124 - N: CGT event J4

104 - 197   Failure to acquire replacement asset and to incur fourth element expenditure after a roll - over under Subdivision   152 - E: CGT event J5

104 - 198   Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6