Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 716 - Miscellaneous special rules  

Subdivision 716-Z - Other  

SECTION 716-855  

716-855   Working out the cost base or reduced cost base of a pre-CGT asset after certain roll-overs  

If:

(a) it is necessary for the purposes of this Part to work out the ^* cost base or ^* reduced cost base of a ^* pre-CGT asset owned at a particular time; and

(b) before that time:

(i) the owner was the recipient company involved in a roll-over under Subdivision 126-B in relation to a ^* CGT event that happened in relation to the CGT asset; or

(ii) the owner was the transferee in relation to a disposal of the CGT asset to which former section 160ZZO of the Income Tax Assessment Act 1936 applied;

the cost base or reduced cost base is worked out as if, in applying former Subdivision 126-B or former section 160ZZO in relation to the CGT event or the disposal, the provisions of that Subdivision or section applying to CGT assets ^* acquired on or after 20 September 1985 replaced those that applied to CGT assets acquired on or before that date.

Note:

The effect is that the owner ' s cost base or reduced cost base will be the same as that of the originating company or transferor, as is the case with post-CGT assets.