INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-32 - CO-OPERATIVES AND MUTUAL ENTITIES  

Division 316 - Demutualisation of friendly society health or life insurers  

Subdivision 316-C - Cost base of shares and rights issued under the demutualisation  

Guide to Subdivision 316-C

SECTION 316-105   Cost base and time of acquisition of shares and certain rights issued under demutualisation  

First element of cost base

316-105(1)  
The first element of the *cost base and *reduced cost base of a *CGT asset is the amount worked out using the formula in subsection (2) if:


(a) the asset is a CGT asset (a demutualisation asset ) covered by section 316-110 ; and


(b) the asset is issued to an entity covered by section 316-115 .

316-105(2)  
The formula is:


Value of the * CGT asset
when it was issued
× Valuation factor worked out
under section 316-65

Time of acquisition

316-105(3)  
The entity is taken to have *acquired the *CGT asset at the time it is issued.


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