Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:2_20
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 2 cl 20
Character Range: 10626–11362

20  After subsection 705‑65(3)
Insert:

Reduction if section 165‑115ZD could apply
 (3A) If, on the assumption that:
 (a) the *members of the joined group had, just before the joining time, *disposed of their *membership interest in the joining entity; and
 (b) the consideration received by the members for the disposal were equal to the *market value of the membership interest at that time;
the *reduced cost base of the membership interest would have been reduced as a result of the operation of section 165‑115ZD of this Act or the Income Tax (Transitional Provisions) Act 1997, then the reduced cost base of the membership interest that is to be used in subsection (1) of this section is reduced by the amount of that reduction.