EXPOSURE DRAFT

1
2	Inserts for
3	Tax and Superannuation Laws
4	Amendment (2014 Measures No. 3) Bill
5	2014: foreign resident CGT integrity
6	measures
7

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Commencement information

Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.			
2.  Schedule ??	The day this Act receives the Royal Assent.		
3.			

1	Schedule ??—Foreign resident CGT integrity
2	measures
3

4	Income Tax Assessment Act 1997

5	1  After subsection 855-30(4)
6	Insert:

7	(4A)  For the purposes of subsections (2) and (4), disregard the *market
8	value of an asset that is not *taxable Australian real property if:
9	(a)  the parties to an *arrangement included the first entity and the
10	other entity, or included:
11	(i)  the first entity or the other entity; and
12	(ii)  an entity that is a first entity or other entity for the
13	purposes of a related application of subsection (3) and
14	table item 2 in subsection (4); and
15	(b)  an effect of the arrangement was to create the asset, as an
16	asset of one of those 2 parties, before the *CGT event
17	happened.

18	2  Application of amendment

19	(1)	Subsection 855-30(4A) of the Income Tax Assessment Act 1997 (as
20	inserted by this Schedule) applies in relation to a CGT event if:
21	(a)  in a case where those 2 parties were members of the same
22	consolidated group or MEC group at the time the asset was
23	created—the CGT event happens after the budget time; and
24	(b)  otherwise—the CGT event happens on or after [insert day the
25	exposure draft is released to the public].

26	(2)	For the purposes of this item, the budget time is 7.30 pm, by legal time
27	in the Australian Capital Territory, on 14 May 2013.

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