Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 125.170

  (1)   The * reduced cost base of a * CGT asset is reduced if:

  (a)   the * market value of the asset is reduced because of a * demerger; and

  (b)   after the demerger the asset is * acquired by an entity from another entity (the transferor ) in a situation where the transferor obtained a roll - over for the disposal; and

  (c)   the reduction occurred when the transferor owned the asset.

  (2)   The * reduced cost base of the asset as determined under the roll - over is reduced just after the roll - over to the extent of the reduction in * market value caused by the * demerger.

Note:   The rules in section   125 - 165 and this section deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.

  (3)   If the * reduced cost base of a * CGT asset is reduced under this section because of a * demerger, no other adjustment can be made under this Act to that reduced cost base because of something that happens under the demerger.