Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 295 - Taxation of superannuation entities  

Subdivision 295-B - Modifications of the Income Tax Assessment Act 1997 for 30 June 1988 assets  

SECTION 295-95   Adjustment of cost base as at 30 June 1988 - return of capital  

295-95(1)    
If:

(a) 30 June 1988 assets of the entity ' s consist of shares in a company; and

(b) at any time during the period commencing at the time when the shares were acquired and ending at the end of 30 June 1988, the company paid an amount that was not a dividend to the entity in respect of the shares;

the cost base to the entity of the shares as at 30 June 1988 is reduced by that amount.

295-95(2)    
If:

(a) a 30 June 1988 asset of the entity ' s consists of an interest or unit in a trust; and

(b) at any time during the period commencing at the time when the interest or unit was acquired and ending at the end of 30 June 1988, the trustee of the trust paid an amount to the entity in respect of the interest or unit, being:

(i) in a case where the entity was exempt from tax for the year of income in which the payment was made - an amount that, if the entity had not been exempt from tax, would not have been the entity's assessable income; or

(ii) in any other case - an amount that would not have been the entity ' s assessable income;

the cost base to the entity of the interest or unit as at 30 June 1988 is reduced by so much of the amount as is not attributable to a deduction allowed under former Division 10C or 10D of the Income Tax Assessment Act 1936 .