Income Tax Assessment Act 1936
(a) the disposal is a disposal of a demutualisation share (other than a demutualisation original share) or an interest in such a share; and
(b) the disposer did not acquire membership rights in the demutualising entity by disposing of membership rights in another mutual entity; and
(c) the disposer is a pre-CGT member; and
(d) the disposal occurs before the demutualisation listing day;
then, for the purpose of working out whether the disposer made a capital gain or capital loss from the disposal, the disposer is taken to have done the following:
(e) to have paid for the acquisition of the share or interest the amount worked out by using the formula:
|Adjusted market value ×||
Share or interest disposed of
Total number of shares
(f) to have paid that amount on the demutualisation resolution day;
(g) to have acquired the share or interest on the demutualisation resolution day. 326-80(2)
In the formula in paragraph (1)(e):
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