Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/9)
Character Range: 525673–528408

*cost base and *reduced cost base of the asset if it stops being a *pre‑CGT asset.

 (2) The first element of each is the asset's market value at the time referred to in subsection 149‑65(2) or (3) or 149‑70(2), as appropriate.

 (3) The other elements do not include any expenditure before the time when the entity is taken to have acquired the asset.

149‑80  No further determination needed after asset stops being a pre‑CGT asset

  After the asset stops being a *pre‑CGT asset, the entity need not make a further determination about it under section 149‑55.

Subdivision 149‑D—How to treat holdings of less than 1% in certain entities

Guide to Subdivision 149‑D

149‑100  What this Subdivision is about

      If the entity is a company covered by paragraph 149‑50(1)(a), (e) or (f) or a publicly traded unit trust, this Subdivision has rules that make it easier for it to determine who had underlying interests in the asset.

Table of sections

149‑105 Basic principles

Special tracing rules for certain companies and publicly traded unit trusts

149‑110 Holdings of less than 1% in the entity
149‑115 Holdings of less than 1% in interposed company or unit trust
149‑120 Notional single shareholder or unitholder of head entity
149‑125 Notional single shareholder or unitholder of interposed company or trust
149‑130 Notional shareholder taken to have minimum rights to distributions
149‑135 Income and capital unitholding of less than 1%

When the rules in this Subdivision do not apply

149‑140 If company or unit trust would not otherwise pass the continuity of ownership test

149‑105  Basic principles

 (1) All holdings of shares or units of less than 1% in the entity are treated as if they were held by a single notional individual. This means that the entity does not have to trace through to the actual ultimate owners who have underlying interests in the asset.

 (2) A similar rule applies if another company covered by paragraph 149‑50(1)(a), (e) or (f) or publicly traded unit trust is interposed between the entity and those ultimate owners. All holdings of less than 1% in the interposed company or trust are treated as if they were held by a different single notional individual.

 (3) This means that the entity does not have to trace through the interposed company or trust to the actual ultimate owners who have underlying interests in the asset.

Note: The rules in this Subdivision may not apply if they would hide a change in majority underlying interests in the asset: see section 149‑140.

[This is the end of the Guide.]

Special tracing rules for certain companies and publicly traded unit trusts

149‑110  Holdings of less than 1% in the entity

 (1) If the entity (the head