Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 124-1060 Consequences of the roll-over for interposed trust 124-1060(1)
Apply this section separately for the interposed trust in relation to the *ownership interests in each *stapled entity that the trustee of the interposed trust *acquires under the *scheme.
124-1060(2)
A whole number of *ownership interests in a *stapled entity that the trustee *acquires under the *scheme are taken to have been acquired before 20 September 1985 if any of the stapled entity ' s assets as at the completion time were acquired by it before that day.
Note:
Generally, a capital gain or capital loss from a CGT asset acquired before 20 September 1985 can be disregarded: see Division 104 .
124-1060(3)
The number (worked out as at the completion time) is the greatest possible that (when expressed as a percentage of all the *ownership interests in the *stapled entity *acquired by the trustee) does not exceed:
(a) the *market value of the stapled entity ' s assets that it acquired before 20 September 1985; less
(b) its liabilities (if any) in respect of those assets;
expressed as a percentage of the market value of all the stapled entity ' s assets less all of its liabilities. The amounts in paragraphs (a) and (b) are to be worked out as at the completion time.
124-1060(4)
The first element of the *cost base and *reduced cost base of each of the trustee ' s *ownership interests in that *stapled entity that are not taken by subsection (3) to have been *acquired before 20 September 1985 is such proportion as is reasonable of the total of the cost bases (as at the completion time) of that stapled entity ' s assets that it acquired on or after that day less its liabilities (if any) in respect of those assets.
124-1060(5)
In applying this section:
(a) a liability of a *stapled entity that is not a liability in respect of a specific asset or assets of the stapled entity is a liability in respect of all the assets of the stapled entity; and
(b) if a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is such amount as is reasonable having regard to the *market values of each of those assets.
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