INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision E - Other assets  

SECTION 160ZZRFA   FIRST ASSET ACQUIRED WHEN TRANSFEROR AND TRANSFEREE UNDER COMMON OWNERSHIP - SHARES IN, AND LOANS TO, TRANSFEROR - REDUCTION IN COST BASE ETC.  

160ZZRFA(1)   [Application of section]  

This section applies where the transferor acquired the first asset at or after the latest time (in this section called the ``common ownership time'' ):

(a) earlier than the first asset disposal time; and

(b) at which the transferor and the transferee came under common ownership.

160ZZRFA(2)   [Reduction in cost base etc]  

If:

(a) the first asset was acquired by the transferor before 20 September 1985; and

(b) at the first asset disposal time, a taxpayer (in this subsection called the ``second taxpayer'' ) held an asset, being:

(i) a share in the transferor that was acquired by the second taxpayer on or after 20 September 1985; or

(ii) a loan to the transferor that was acquired by the second taxpayer on or after 20 September 1985;

the cost base, the indexed cost base or the reduced cost base of the share or the loan to the second taxpayer is reduced by such amount (if any) as is reasonable having regard to:

(c) the circumstances in which the share or the loan was acquired by the second taxpayer; and

(d) the extent (if any) to which the market value of the share or the loan was reduced as a result of the disposal of the first asset at the first asset disposal time.