Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 2/2)
Character Range: 7554093–7556463

351(2)(d) were omitted.
 (3) The first element of the *cost base and *reduced cost base of a *CGT asset on 10 May 2005 is the *market value of the asset on that day if, on that day:
 (a) the CGT asset was a *membership interest you held in another entity; and
 (b) you were a foreign resident, or the trustee of a trust that was not a *resident trust for CGT purposes; and
 (c) the CGT asset was a *post‑CGT asset; and
 (d) the CGT asset did not have the necessary connection with Australia (within the meaning of this Act as in force on that day) disregarding the operation of paragraph (b) of item 5 and paragraph (b) of item 6 of the table in section 136‑25 (as in force on that day).
 (4) Also, Parts 3‑1 and 3‑3 apply to the asset as if you had *acquired it on that day.

855‑30  Principal asset test
 (1) The purpose of this section is to define when an entity's underlying value is principally derived from Australian real property (see paragraph 855‑5(2)(b)).
 (2) A *membership interest held by an entity (the holding entity) in another entity (the test entity) passes the principal asset test if the sum of the *market values of the test entity's assets that are *taxable Australian real property exceeds the sum of the *market values of its assets that are not taxable Australian real property.
Note: The market value of any of the latter kind of assets that are duplicated within the test entity's corporate group could be disregarded (see section 855‑32).
 (3) For the purposes of subsection (2), treat an asset of an entity (the first entity) that is a *membership interest in another entity (the other entity) as if it were instead the following 2 assets:
 (a) an asset that is *taxable Australian real property (the TARP asset);
 (b) an asset that is not taxable Australian real property (the non‑TARP asset).
 (4) For the purposes of subsection (2), treat the *market value of the TARP asset and the non‑TARP asset according to the following table.

Market value of the TARP asset and the non‑TARP asset
Item                                                   If:                                                                                                                                the market value of the TARP asset is:                                                                                   the market value of the non‑TARP asset is: