Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-45
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RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS
Division 328
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Small business entities
Subdivision 328-G
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Restructures of small businesses
Consequences of a roll-over under this Subdivision
SECTION 328-465 New membership interests as consideration for transfer of assets 328-465(1)
If:
(a) section 328-455 applies in relation to the transfer of an asset under a transaction; and
(b) the transaction provides for *membership interests to be issued; and
(c) the membership interests constitute all or part of the consideration provided for the transfer of assets ( transferred assets ) under the transaction;
(d) the first element of the membership interests ' *cost base is the sum of:
(e) the first element of the membership interests ' *reduced cost base is worked out similarly.
328-465(2)
However, if the *membership interests constituted only a part of the total consideration provided for the transfer of the transferred assets, reduce accordingly the amounts worked out under paragraphs (1)(d) and (e).
View history note
Hide history noteSECTION 328-465 New membership interests as consideration for transfer of assets 328-465(1)
If:
(a) section 328-455 applies in relation to the transfer of an asset under a transaction; and
(b) the transaction provides for *membership interests to be issued; and
(c) the membership interests constitute all or part of the consideration provided for the transfer of assets ( transferred assets ) under the transaction;
then:
(d) the first element of the membership interests ' *cost base is the sum of:
(i) the *roll-over costs of the transferred assets that are neither *depreciating assets nor *pre-CGT assets; and
(less any liabilities that a transferee of any of the transferred assets undertakes to discharge in respect of the transferred assets) divided by the number of membership interests; and
(ii) the *adjustable values of the transferred assets that are depreciating assets;
(e) the first element of the membership interests ' *reduced cost base is worked out similarly.
328-465(2)
However, if the *membership interests constituted only a part of the total consideration provided for the transfer of the transferred assets, reduce accordingly the amounts worked out under paragraphs (1)(d) and (e).
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