Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-M - Scrip for scrip roll-over  

Operative provisions

SECTION 124-784A   When arrangement is a restructure  

124-784A(1)    
This section applies in relation to a single *arrangement if:

(a) the replacement entity for the arrangement knows, or could reasonably be expected to know:

(i) that a roll-over under section 124-780 or 124-781 has been, or will be, obtained in relation to the arrangement; and

(ii) that there is a *common stakeholder for the arrangement (disregarding subsections 124-783(4) and (5) ); and

(b) subsection (2) is satisfied for the arrangement.

Note:

If this section applies, the first element of the cost base and reduced cost base of interests in the original entity acquired under the arrangement is worked out under section 124-784B .

124-784A(2)    

This subsection is satisfied for the *arrangement if the result of step 2 is more than 80% of the result of step 3. Method statement


Application if an entity is listed

124-784A(3)    
For the purposes of:

(a) subsection (2); and

(b) step 5 of the method statement in subsection 124-784B(2) ;

if interests in an entity are listed for quotation in the official list of an *approved stock exchange at the completion time, then the replacement entity may choose that the *market value at that time of an interest in the first-mentioned entity is taken to be the *officially quoted price of the interest at that time.

Application if more than one original entity

124-784A(4)    
If qualifying interests in more than one original entity are *acquired under the *arrangement, then, for the purposes of subsections (1) and (2):

(a) those interests of each of those original entities are taken to have been acquired under separate arrangements; and

(b) those separate arrangements are taken to have happened in the same order as the acquisitions.

124-784A(5)    
If qualifying interests in more than one original entity:

(a) would be taken by subsection (4) to have been *acquired under separate *arrangements happening at the same time; or

(b) are acquired under separate arrangements that commence at the same time;

then, for the purposes of subsections (1) and (2), the replacement entity must choose the order in which those separate arrangements are to have happened.

Meaning of officially quoted price

124-784A(6)    
An interest in an entity has an officially quoted price at a particular time if, during the one week period starting on the day in which that time occurred, there was at least one transaction on the relevant stock exchange in interests of that class. That price is the weighted average of the prices at which those interests were traded on that stock exchange during that period.

124-784A(7)    
For the purposes of subsection (6), if an interest is quoted on 2 or more *approved stock exchanges on that day, the officially quoted price of the interest is determined under subsection (6) in respect of whichever of those the entity chooses.