Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 152.47

  (1)   This section applies if:

  (a)   one entity (the asset owner ) owns a * CGT asset (whether the asset is tangible or intangible); and

  (b)   either:

  (i)   the asset is used, or held ready for use, in the course of carrying on a * business in an income year by another entity (the business entity ); or

  (ii)   the asset is inherently connected with a business that is carried on in an income year by another entity (the business entity ); and

  (c)   the business entity is not (apart from this section) an * affiliate of, or * connected with, the asset owner.

Note:   The meaning of connected with an entity is affected by section   152 - 78.

  (2)   For the purposes of this Subdivision, in determining whether the business entity is an * affiliate of, or is * connected with, the asset owner, take the following to be affiliates of an individual:

  (a)   a * spouse of the individual;

  (b)   a * child of the individual, being a child who is under 18 years.

  (3)   If an entity is an * affiliate of, or * connected with, another entity as a result of subsection   (2), then the * spouse or * child mentioned in that subsection is, in addition, taken to be an affiliate of the individual for the purposes of this Subdivision, and for the purposes of sections   328 - 110 to 328 - 125 to the extent that they relate to this Subdivision.

Example:   The spouse or child mentioned in subsection   (2) is taken to be an affiliate of the individual for the purposes of working out which entities are affiliates of or connected with entities under section   152 - 48.

  (4)   To avoid doubt, subsection   (2) applies:

  (a)   for the purposes of reducing or disregarding, under this Division, any * capital gain from any * CGT asset; but

  (b)   only while:

  (i)   a * spouse remains a spouse; or

  (ii)   a * child remains a child who is under 18 years.