Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.784

Cost base of equity or debt given within acquiring group

Purpose

             (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

             (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.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback