Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Foreign hybrids  

Subdivision 830-D - Special rules applicable when an entity becomes or ceases to be a foreign hybrid  

Note:

In the case of a foreign hybrid company, references in this Subdivision that relate to partnerships are to be read subject to Subdivision 830-B . For example, a reference to a partner will be a reference to a shareholder in the company who is treated by Subdivision 830-B as a partner.

SECTION 830-90  

830-90   What the expression tax cost is set means  

The following table explains what the expression tax cost is set at the start of the hybrid year or the post-hybrid year means, in relation to an asset in which a partner has an interest or in relation to an asset of the entity, for the purposes of each *asset-based income tax regime:

Tax cost is set
Item	If the following asset-based income tax regime is to apply:	The expression means that:
1	Subdivisions 40-A to 40-D, sections 40-425 to 40-445 and Subdivision 328-D	the *adjustable value of the interest or the asset at the start of the hybrid year or the post-hybrid year is varied so that it equals the partner ' s *tax cost setting amount for the interest, or the entity ' s tax cost setting amount for the asset, at that time in relation to the *asset-based income tax regime
2	Division 70	the value of the interest or the asset at the start of the hybrid year or the post-hybrid year under Division 70 is varied so that it equals the partner ' s *tax cost setting amount for the interest, or the entity ' s tax cost setting amount for the asset, at that time in relation to the *asset-based income tax regime
3	Part 3-1 or 3-3	the *cost base or *reduced cost base of the interest or the asset at the start of the hybrid year or the post-hybrid year is varied so that it equals the partner ' s *tax cost setting amount for the interest, or the entity ' s tax cost setting amount for the asset, at that time in relation to the *asset-based income tax regime
4	Division 16E of Part III of the Income Tax Assessment Act 1936	the Division applies as if the interest or the asset were *acquired by the partner or the entity at the start of the hybrid year or the post-hybrid year for a payment equal to the partner ' s *tax cost setting amount for the interest, or the entity ' s tax cost setting amount for the asset, at that time in relation to the *asset-based income tax regime
5	Any other provision of this Act or the Income Tax Assessment Act 1936	the cost of the interest or asset at the start of the hybrid year or the post-hybrid year is varied so that it equals the partner ' s *tax cost setting amount for the interest, or the entity ' s tax cost setting amount for the asset, at that time in relation to the *asset-based income tax regime