Taxation Laws Amendment (Company Law Review) Act 1998 (63 of 1998)

Schedule 6   Amendment of the Income Tax Assessment Act 1997

Part 1   Bonus shares

12   After subsection 130-20(3)

Insert:

(3A) If only a part of a capital benefit that is bonus equities is a *dividend, or is taken to be a dividend under subsection 45(2) or 45C(1) of the Income Tax Assessment Act 1936, you apportion the first element of your *cost base and *reduced cost base for the original equities in a reasonable way over both the original equities and the bonus equities.