Cost base of assets for companies which become CFCs after 30 June 1990



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

The cost base of assets owned by a company that became a CFC after 30 June 1990 is market value of those assets at the time the company became a CFC.

Example 24

Cost base of asset

A company that became a CFC on 1 March 1993 disposes of an asset on 1 October 1995. The asset was acquired on 1 May 1992.


The asset will be deemed to have been acquired for market value on 1 March 1993 - that is, when the company became a CFC. The capital gain or capital loss is therefore worked out using the change in the asset's value between 1 March 1993 and 1 October 1995.

Last modified: 05 Dec 2006QC 18000