S 124-385 repealed by No 133 of 2014, s 3 and Sch 1 item 10, applicable in relation to shares or units disposed of, redeemed or cancelled at or after 7.30 pm, by legal time in the Australian Capital Territory, on 10 May 2011. S 124-385 formerly read:
SECTION 124-385 Consequences for the interposed company
124-385(1A)
This section applies if the interposed company so chooses under subsection
124-380(6)
.
History
S 124-385(1A) inserted by No 117 of 2002.
124-385(1)
A whole number of the *shares that the interposed company owns in the original company (just after the completion time) are taken to have been *acquired before 20 September 1985 if any of the original company
'
s assets as at the completion time were acquired by it before that day.
Note:
Generally, a capital gain or capital loss you make from a CGT asset that you acquired before 20 September 1985 can be disregarded: see Division
104
.
124-385(2)
The number (worked out as at the completion time) is the greatest possible that (when expressed as a percentage of all the *shares) does not exceed:
•
the *market value of the original company
'
s assets that it *acquired before 20 September 1985 less its liabilities (if any) in respect of those assets;
expressed as a percentage of:
•
the market value of
all
the original company
'
s assets less
all
of its liabilities.
124-385(3)
The first element of the *cost base of the interposed company
'
s *shares in the original company that are
not
taken to have been *acquired before 20 September 1985 is:
•
the total of the cost bases (as at the completion time) of the original company
'
s assets that it acquired on or after that day;
less:
•
its liabilities (if any) in respect of those assets.
124-385(4)
The first element of the *reduced cost base of the interposed company
'
s *shares is worked out similarly.
124-385(5)
A liability of the original company that is not a liability in respect of a specific asset or assets of the company is taken to be a liability in respect of all the assets of the company.
Note:
An example is a bank overdraft.
124-385(6)
If a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is equal to:
The *market value of the asset
The total of the market values of all the
assets that the liability is in respect of |
S 124-385 inserted by No 46 of 1998.
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