New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (90 of 2002)

Schedule 2   Consolidation: miscellaneous changes to asset cost provisions

Income Tax Assessment Act 1997

20   After subsection 705-65(3)

Insert:

Reduction if section 165-115ZD could apply

(3A) If, on the assumption that:

(a) the*members of the joined group had, just before the joining time,*disposed of their*membership interest in the joining entity; and

(b) the consideration received by the members for the disposal were equal to the*market value of the membership interest at that time;

the*reduced cost base of the membership interest would have been reduced as a result of the operation of section 165-115ZD of this Act or theIncome Tax (Transitional Provisions) Act 1997,then the reduced cost base of the membership interest that is to be used in subsection (1) of this section is reduced by the amount of that reduction.