EXPOSURE DRAFT

1
2	Inserts for
3	Tax and Superannuation Laws
4	Amendment (2014 Measures No. 3) Bill
5	2014: Foreign resident CGT assets used
6	by permanent establishments
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 assets
2	used by permanent establishments
3

4	Income Tax Assessment Act 1997

5	1  Section 855-15 (cell at table item 3, column headed
6	“Description”)
7	Repeal the cell, substitute:
A *CGT asset that:
(a) you have used at any time in carrying on a *business through: (i) if you are a resident in a country that has entered into an
*international tax agreement with Australia containing
a *permanent establishment article—a permanent establishment (within the meaning of the relevant international tax agreement) in Australia; or
(ii) otherwise—a *permanent establishment in Australia;
and
(b) is not covered by item 1, 2 or 5 of this table

8	2  After section 855-15
9	Insert:

10	855-16  Meaning of permanent establishment article

11	A permanent establishment article is:
12	(a)  Article 5 of the United Kingdom convention (within the
13	meaning of the International Tax Agreements Act 1953); or
14	(b)  a corresponding provision of another *international tax
15	agreement.

16	3  Subsection 855-35(1)
17	Omit “(within the meaning of section 23AH of the Income Tax
18	Assessment Act 1936)”, substitute “(as mentioned in that item)”.

19	4  Subsection 995-1(1)
20	Insert:

21	permanent establishment article has the meaning given by
22	section 855-16.

1	5  Application of amendments
2	The amendments made by this Schedule apply to CGT events that
3	happen on or after the commencement of item 112 of Schedule 4 to the
4	Tax Laws Amendment (2006 Measures No. 4) Act 2006.

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