Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_4:p4
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 4/4)
Character Range: 447321–449118

you own *shares in a company or units in a unit trust (the original equities); and

 (b) the company issues other shares, or the trustee issues other units, (the bonus equities) to you because it owes an amount to you in relation to the original equities.

 (2) The first element of your *cost base and *reduced cost base for the bonus equities includes:

 (a) for *shares—any part of the amount that is a *dividend; and

 (b) for units—any part of the amount that is or will be included in your assessable income.

You are taken to have *acquired the bonus equities when they were issued.

Note 1: There are special indexation rules for cost base modifications: see Division 114.

Note 2: The amounts of calls you pay on partly‑paid equities will also form part of the first element of their cost base and reduced cost base.

Note 3: There is a special rule for shares issued on or before 30 June 1987: see subsection 130‑20(2) of the Income Tax (Transitional Provisions) Act 1997.

 (3) This table sets out what happens if:

 (a) none of the amount owed to you by the company is a *dividend; or

 (b) none of the amount owed to you by the trustee is or will be included in your assessable income.

Modifications where amount neither a dividend nor assessable
                                                                                                                                                                                                 You are taken to have *acquired the bonus equities when:

Item                                                          In this situation:                                                                                                                                                                           There is this effect: