Income Tax Assessment Act 1997
A partner is taken to have *acquired all of the *shares before 20 September 1985 if the partner acquired all the partner's interests in the assets of the *business before that day and none of the assets is a *precluded asset. 122-185(2)
However, if at least one of the assets is a *precluded asset, the partner is taken to have *acquired a whole number of the *shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares) does not exceed:
expressed as a percentage of:
There are rules for working out what are the liabilities in respect of an interest: see section 122-145 .122-185(3)
The first element of the partner's *cost base and *reduced cost base of each other *share is the total of the *market values of the partner's interests in the *precluded assets (less any liabilities the company undertakes to discharge in respect of those interests) divided by the number of the other shares. 122-185(4)
The *market value of an interest in an asset is worked out when the partner *disposed of it. The *cost base or *reduced cost base of an interest is worked out at the same time.