Document ID: chunk:federal_register_of_legislation:C2015A00135:clause:1_8:p2
Version: federal_register_of_legislation:C2015A00135
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 2/2)
Character Range: 6196–7099

base of equity or debt given within acquiring group

Purpose
 (1) This section allocates an appropriate *cost base to equity issued, or new debt owed, under the *arrangement, by a member of a *wholly‑owned group to another member (the recipient) of the group, if:
 (a) the acquiring entity is a member of the group; and
 (b) the cost base of an original interest was transferred or allocated under section 124‑782 because the original interest holder is a *significant stakeholder or a *common stakeholder for the arrangement.

Allocation of cost base
 (2) The first element of the *cost base of the equity or debt for the recipient is that part of the cost base of the original interest transferred or allocated under section 124‑782 as:
 (a) may be reasonably allocated to the equity or debt; and
 (b) is not more than the *market value of the equity or debt just after the *arrangement was completed.