Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 768.505

  (1)   The * capital gain or * capital loss a company (the holding company ) that is an Australian resident makes from a * CGT event that happened at a particular time (the time of the CGT event ) to a * share in a company (the foreign disposal company ) that is a foreign resident is reduced if:

  (a)   the holding company held a * direct voting percentage of 10% or more in the foreign disposal company throughout a 12 month period that:

  (i)   began no earlier than 24 months before the time of the CGT event; and

  (ii)   ended no later than that time; and

  (b)   the share is not :

  (i)   an eligible finance share (within the meaning of Part   X of the Income Tax Assessment Act 1936 ); or

  (ii)   a widely distributed finance share (within the meaning of that Part); and

  (c)   the CGT event is CGT event A1, B1, C2, E1, E2, G3, J1, K4, K6, K10 or K11.

  (2)   The gain or loss is reduced by the * active foreign business asset percentage (see sections   768 - 510, 768 - 530 and 768 - 535) of the foreign disposal company in relation to the holding company at the time of the CGT event.