Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 124 - Replacement-asset roll-overs  

Subdivision 124-M - Scrip for scrip roll-over  

Operative provisions

SECTION 124-784   Cost base of equity or debt given within acquiring group  

Purpose

124-784(1)  
This section allocates an appropriate *cost base to equity issued, or new debt owed, under the *arrangement, by a member of a *wholly-owned group to another member (the recipient ) of the group, if:


(a) the acquiring entity is a member of the group; and


(b) the cost base of an original interest was transferred or allocated under section 124-782 because the original interest holder is a *significant stakeholder or a *common stakeholder for the arrangement. Allocation of cost base

124-784(2)  
The first element of the *cost base of the equity or debt for the recipient is that part of the cost base of the original interest transferred or allocated under section 124-782 as:


(a) may be reasonably allocated to the equity or debt; and


(b) is not more than the *market value of the equity or debt just after the *arrangement was completed.


 

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