Tax and Superannuation Laws Amendment (2015 Measures No. 4) Act 2015 (135 of 2015)

Schedule 1   Scrip for scrip roll-over

Income Tax Assessment Act 1997

11   Section 124-784C

Repeal the section, substitute:

124-784C Cost base of equity or debt given within acquiring group

Purpose

(1) This section allocates an appropriate *cost base to equity issued, or new debt owed, under the *arrangement by a member of a *wholly-owned group to another member (the holder ) of the group, if:

(a) an acquiring entity is a member of the group; and

(b) the cost base of the acquiring entity for a qualifying interest was worked out under section 124-784B.

Allocation of cost base

(2) The first element of the *cost base of the equity or debt for the holder is that part of the cost base of the qualifying interest worked out under section 124-784B as:

(a) may be reasonably allocated to the equity or debt; and

(b) is not more than the *market value of the equity or debt at the completion time.