Tax Laws Amendment (2008 Measures No. 2) Act 2008 (38 of 2008)

Schedule 3   CGT market value substitution rule for interests in widely held entities

Income Tax Assessment Act 1997

1   After subsection 116-30(2A)

Insert:

(2B) Despite paragraph (2)(b), subsection (2) does not apply if the *CGT event is *CGT event C2 (about cancellation, surrender and similar endings) and the *CGT asset that is the subject of the event is:

(a) a *share in a company that has at least 300 *members and is not a company that is covered by section 116-35; or

(b) a unit in a unit trust that has at least 300 unit holders and is not a trust that is covered by section 116-35.

Note: So, for one of these assets, the capital proceeds for the cancellation will be what you actually received.