TAX LAWS AMENDMENT (2010 MEASURES NO. 1) ACT 2010 (NO. 56, 2010) - SCHEDULE 2 Forestry managed investment schemes

TAX LAWS AMENDMENT (2010 MEASURES NO. 1) ACT 2010 (NO. 56, 2010) - SCHEDULE 2

Income Tax Assessment Act 1936

1  After subsection 82KZMGA(1)

Insert:

          (1A)  Paragraph (1)(b) does not apply to a CGT event if:

                     (a)  the CGT event happens because of circumstances outside the taxpayer's control; and

Example: The interest is compulsorily acquired.

                     (b)  when the taxpayer acquired the interest, the taxpayer could not reasonably have foreseen the CGT event happening.

Income Tax Assessment Act 1997

2  After subsection 394‑10(5)

Insert:

          (5A)  Paragraph (5)(b) does not apply to a * CGT event if:

                     (a)  the CGT event happens because of circumstances outside your control; and

Example: The forestry interest is compulsorily acquired.

                     (b)  when you acquired the * forestry interest, you could not reasonably have foreseen the CGT event happening.

Taxation Administration Act 1953

3  After subsection 290‑50(2) in Schedule 1

Insert:

          (2A)  For the purposes of subsection (2), disregard:

                     (a)  subsection 82KZMGA(1A) of the Income Tax Assessment Act 1936 ; and

                     (b)  subsection 394‑10(5A) of the Income Tax Assessment Act 1997 .

Note 1:       Those 2 subsections relate to forestry managed investment schemes.

Note 2:       The effect of this subsection is that a scheme will have been implemented in a way that is materially different from that described in a product ruling if the tax outcome for participants in the scheme is the same as that described in the ruling only because of the operation of the subsections mentioned in paragraphs (a) and (b).

4  Application provision

The amendments made by this Schedule apply to CGT events that happen on or after 1 July 2007.