Income Tax Assessment Act 1997

Part 3-3 inserted by No 46 of 1998.

Div 124 inserted by No 46 of 1998.

Subdiv 124-H repealed by No 133 of 2014, s 3 and Sch 1 item 10, applicable in relation to shares or units disposed of, redeemed or cancelled at or after 7.30 pm, by legal time in the Australian Capital Territory, on 10 May 2011.

S 124-470 repealed by No 133 of 2014, s 3 and Sch 1 item 10, applicable in relation to shares or units disposed of, redeemed or cancelled at or after 7.30 pm, by legal time in the Australian Capital Territory, on 10 May 2011. S 124-470 formerly read:

SECTION 124-470 Consequences for the company  
124-470(1)
A whole number of the units that the company owns in the unit trust (just after the completion time) are taken to have been *acquired before 20 September 1985 if any of the unit trust ' s assets as at the completion time were acquired by it before that day.

Note:

Generally, a capital gain or capital loss you make from a CGT asset that you acquired before 20 September 1985 can be disregarded: see Division 104 .

124-470(2)
The number (worked out as at the completion time) is the greatest possible that (when expressed as a percentage of all the units) does not exceed:

• the *market value of the unit trust ' s assets that it *acquired before 20 September 1985 less its liabilities (if any) in respect of those assets;

expressed as a percentage of:

• the market value of all the unit trust ' s assets less all of its liabilities.

124-470(3)
The first element of the *cost base of the company ' s units in the unit trust that are not taken to have been *acquired before 20 September 1985 is:

• the total of the cost bases (as at the completion time) of the unit trust ' s assets that it acquired on or after that day;

less:

• its liabilities (if any) in respect of those assets.

124-470(4)
The first element of the *reduced cost base of the company ' s units is worked out similarly.

124-470(5)
A liability of the unit trust that is not a liability in respect of a specific asset or assets of the trust is taken to be a liability in respect of all the assets of the trust.

Note:

An example is a bank overdraft.

124-470(6)
If a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is equal to:

The *market value of the asset                     The total of the market values of all the assets that the liability is in respect of

S 124-470 inserted by No 46 of 1998.