Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 124-1055 Consequences of the roll-over for exchanging members 124-1055(1)
A *capital gain or *capital loss you make as a result of the *scheme from each of your *ownership interests is disregarded.
124-1055(2)
If you *acquired all of your *ownership interests in the *stapled entities on or after 20 September 1985, the first element of the *cost base and *reduced cost base of each of your ownership interests in the interposed trust is such amount as is reasonable having regard to:
(a) the total of the *cost bases of all of your ownership interests in the *stapled entities; and
(b) the number, *market value and character of your ownership interests in the interposed trust.
Example:
Naomi had a cost base of $2.00 for each of her 200 Public Company A shares, $1.50 for each of her 200 Unit Trust No 1 units and $0.50 for each of her 200 Unit Trust No 2 units. The total of the cost bases of all of her membership interests is $800.00.
It is reasonable to allocate $8.00 to each of the 100 units in the interposed trust that she receives under the reorganisation.
124-1055(3)
If you *acquired all of your *ownership interests in the *stapled entities before 20 September 1985, you are taken to have acquired all of your ownership interests in the interposed trust before that day.
124-1055(4)
If you *acquired some of your *ownership interests in the *stapled entities before 20 September 1985, you are taken to have acquired so many of your ownership interests in the interposed trust as is reasonable before that day having regard to:
(a) the number, *market value and character of your ownership interests in the stapled entities; and
(b) the number, market value and character of your ownership interests in the interposed trust.
Note:
Generally, a capital gain or capital loss from a CGT asset acquired before 20 September 1985 can be disregarded: see Division 104.
124-1055(5)
The first element of the *cost base and *reduced cost base of each of your *ownership interests in the interposed trust that is not taken by subsection (4) to have been *acquired before 20 September 1985 (your post-CGT interests ) is such amount as is reasonable having regard to:
(a) the total of the cost bases of your ownership interests in the *stapled entities that you acquired on or after 20 September 1985; and
(b) the number, *market value and character of your post-CGT interests.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
