Commonwealth Consolidated Acts

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

INCOME TAX ASSESSMENT ACT 1997 - SECT 310.55

CGT assets--if global asset approach chosen

Consequences for transferring entity

             (1)  For each of the original assets to which this section applies, the transferring entity's * capital proceeds from the relevant transfer event are taken to be an amount equal to:

                     (a)  if, apart from this subsection, the event would result in a * capital gain--the asset's * cost base just before the event; or

                     (b)  if, apart from this subsection, the event would result in a * capital loss--the asset's * reduced cost base just before the event.

Note:          This section only applies if it is chosen to apply under subsection 310-50(2).

Consequences for receiving entity

             (2)  For each of the received assets to which this section applies, the first element of the * cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the corresponding original asset just before the relevant transfer event.

             (3)  For each of the received assets to which this section applies, the first element of the * reduced cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the corresponding original asset just before the relevant transfer event.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback