Income Tax Assessment Act 1997
View history note
Hide history noteThis section applies if the interposed company so chooses under subsection 615-30(1) .
615-65(2)
A number of the *shares or units that the interposed company owns in the original entity (immediately after the completion time) are taken to have been *acquired before 20 September 1985 if any of the original entity ' s assets as at the completion time were acquired by it before that day.
Note:
Generally, a capital gain or capital loss you make from a CGT asset that you acquired before 20 September 1985 can be disregarded: see Division 104 .
615-65(3)
That number (worked out as at the completion time) is the greatest possible whole number that (when expressed as a percentage of all the *shares or units) does not exceed:
(a) the *market value of the original 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 original entity ' s assets less all of its liabilities.
615-65(4)
The first element of the *cost base of the interposed company ' s *shares or units in the original entity that are not taken to have been *acquired before 20 September 1985 is:
(a) the total of the cost bases (as at the completion time) of the original entity ' s assets that it acquired on or after that day; less
(b) its liabilities (if any) in respect of those assets.
The first element of the *reduced cost base of those shares or units is worked out similarly.
615-65(5)
A liability of the original entity that is not a liability in respect of a specific asset or assets of the original entity is taken to be a liability in respect of all the assets of the original entity.
Note:
An example is a bank overdraft.
615-65(6)
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 equal to:
| The *market value of the asset | ||
| Total market value of all the assets that the liability is in respect of |
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