Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 125-170 Reduced cost base reduction if demerger asset subject to roll-over 125-170(1)
The *reduced cost base of a *CGT asset is reduced if:
(a) the *market value of the asset is reduced because of a *demerger; and
(b) after the demerger the asset is *acquired by an entity from another entity (the transferor ) in a situation where the transferor obtained a roll-over for the disposal; and
(c) the reduction occurred when the transferor owned the asset.
125-170(2)
The *reduced cost base of the asset as determined under the roll-over is reduced just after the roll-over to the extent of the reduction in *market value caused by the *demerger.
Note:
The rules in section 125-165 and this section deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.
125-170(3)
If the *reduced cost base of a *CGT asset is reduced under this section because of a *demerger, no other adjustment can be made under this Act to that reduced cost base because of something that happens under the demerger.
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.
