INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision F - Other adjustments  

SECTION 160ZZRH   EQUITY INTEREST IN TRANSFEREE - COMPENSATORY INCREASE IN COST BASE ETC.  

160ZZRH(1)   [Increase in cost base, etc, of eligible equity interest]  

If:

(a) at the first asset disposal time, a taxpayer (in this section called the ``third taxpayer'' ) (who may be the second taxpayer mentioned in section 160ZZRE , 160ZZRF , 160ZZRFA or 160ZZRG ) holds an eligible equity interest in the transferee that was acquired by the third taxpayer on or after 20 September 1985; and

(b) the third taxpayer disposes of the eligible equity interest;

the cost base, the indexed cost base or the reduced cost base of the eligible equity interest to the third taxpayer is increased by such amount (if any) as is reasonable having regard to:

(c) the increase in the value of the interest resulting from the acquisition of the first asset; and

(d) the amount of any relevant reductions made under Subdivision C, D or E; and

(e) in the case of the indexed cost base - inflation as measured using the method in section 160Q .

160ZZRH(2)   [Increase not to exceed total adjustments]  

The total of increases made under subsection (1) in relation to the first asset is not to exceed the total of adjustments made in relation to that asset under Subdivisions C, D and E.