Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 615.50

Trading stock

  (1)   The amount included in your assessable income because of the disposal, redemption or cancellation of each of your * shares or units described in paragraph   615 - 45(c) that was your * trading stock at the time mentioned in that paragraph is equal to:

  (a)   if the share or unit had been your trading stock ever since the start of the income year that included that time--the total of:

  (i)   its * value as trading stock at the start of the income year; and

  (ii)   the amount (if any) by which its cost had increased since the start of the income year; or

  (b)   otherwise--its cost at that time.

  (2)   For each of the * shares that you acquired as described in paragraph   615 - 45(d) that is your * trading stock, you are taken to have paid:

Start formula start fraction Total included in your assessable income under subsection (1) for your corresponding *shares or units in the original entity over Number of your shares acquired as described in paragraph 615-45(d) that are your *trading stock end fraction end formula

  (3)   For the purposes of Division   70 (about trading stock), you, the original entity and the interposed company are taken to have dealt with each other in the ordinary course of * business and at * arm's length for each of the transactions referred to in paragraph   615 - 5(1)(c) or 615 - 10(1)(d) or (e).


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