INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-G - 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;

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

(ii) the *adjustable values of the transferred assets that are depreciating assets;
(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


(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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