Income Tax Assessment Act 1997
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719-555(1)
This Subdivision applies if:
(a) one or more entities hold * pooled interests (the reset interests ) in * eligible tier-1 companies that are members of a * MEC group, just before a particular time (the trigger time ); and
(b) at the trigger time, either or both of these things happen to one or more of those eligible tier-1 companies (the trigger companies ):
(i) the company ceases to be a member of the group;
(ii) a * CGT event happens in relation to one or more reset interests in the company; and
(c) the * market value of the reset interests as a whole (including the market value of synergies arising from the combination of those interests) just before the trigger time is more than nil.
Object
719-555(2)
The object of this Subdivision is to set the cost of all reset interests:
(a) first, by allocating to each reset interest held in a trigger company so much of the total cost of all reset interests held in members of the group that the * market value of the interest bears to the group's market value; and
(b) then, by allocating the remainder of that total cost to all reset interests held in other * eligible tier-1 companies, by dividing that remainder by the number of those interests.
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