INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-G - Restructures of small businesses  

Consequences of a roll-over under this Subdivision

SECTION 328-465   New membership interests as consideration for transfer of assets  

328-465(1)  
If:


(a) section 328-455 applies in relation to the transfer of an asset under a transaction; and


(b) the transaction provides for *membership interests to be issued; and


(c) the membership interests constitute all or part of the consideration provided for the transfer of assets ( transferred assets ) under the transaction;

then:


(d) the first element of the membership interests ' *cost base is the sum of:


(i) the *roll-over costs of the transferred assets that are neither *depreciating assets nor *pre-CGT assets; and

(ii) the *adjustable values of the transferred assets that are depreciating assets;
(less any liabilities that a transferee of any of the transferred assets undertakes to discharge in respect of the transferred assets) divided by the number of membership interests; and


(e) the first element of the membership interests ' *reduced cost base is worked out similarly.

328-465(2)  
However, if the *membership interests constituted only a part of the total consideration provided for the transfer of the transferred assets, reduce accordingly the amounts worked out under paragraphs (1)(d) and (e).


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.