Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You reduce the * capital proceeds from a * CGT event that happens in relation to a * CGT asset you have if the conditions in this table are satisfied.
Conditions for reduction | |
Item | Condition |
1 | You must have * acquired the asset from a company or * CFC |
2 | Either: (a) the company obtained a roll - over for the * CGT event that resulted in your * acquisition of the asset; or (b) the * CFC obtained a roll - over for that event in applying Division 7 of Part X of the Income Tax Assessment Act 1936 for the purpose of working out the * attributable income of a company in relation to any entity except a roll - over under Subdivision 124 - J (about Crown leases), 124 - K (about depreciating assets) or 124 - L (about prospecting and mining entitlements) |
3 | The company or * CFC is taken, under section 47A of the Income Tax Assessment Act 1936 , to have paid you a dividend in relation to that event and some or all of the dividend is included in your assessable income under section 44 of that Act |
Note: For roll - overs: see Divisions 122, 124 and 126.
(2) The reduction is the lesser of:
(a) the amount of the dividend; and
(b) the amount of any * capital gain that, apart from the roll - over, the company or * CFC would have made from the * CGT event if its * capital proceeds from the event had been the asset's * market value (at the time of the event).
Note: This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936 .