Re Allina Pty Limited v Commissioner of Taxation

1320 99 ALR 295; [1991] FCA 78

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Interrogate

Catchwords

1. Taxation
2. › Income tax
3. › Capital gains tax
4. › Cost base of asset
5. › Deemed cost base where asset acquired without consideration
6. › Whether renounceable rights to shares 'acquired from another person'
7. › Whether creation of new proprietary rights constitutes acquisition from the creator
8. › Income Tax Assessment Act 1936 (Cth), s 160ZH(9)(a)
1. Taxation
2. › Income tax
3. › Capital gains tax
4. › Cost base of asset
5. › Meaning of 'acquired the asset from another person'
6. › Distinction between 'acquisition' and 'disposition of property'
7. › Income Tax Assessment Act 1936 (Cth), s 160ZH(9)(a)
1. Statutory Interpretation
2. › Later amending statute
3. › Whether later amendment may be used to construe earlier provision
4. › Whether permissible where earlier provision is unambiguous

Quick Take

A taxpayer 'acquires an asset from another person' within s 160ZH(9)(a) of the ITAA 1936 when that other person creates new proprietary rights (such as renounceable rights to shares) which simultaneously come into the possession of the taxpayer, even though the creation of those rights does not involve a 'disposition of property' by the other person. The concept of 'acquisition' is broader than 'disposition' and encompasses the receipt of newly created proprietary rights from their creator. Where renounceable rights to shares are acquired without consideration, the deemed cost base equals market value at the time of acquisition.