Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_14:p23
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 23/40)
Character Range: 90708–93314

than the *share's *cost base. If you make a *capital gain, the share's *cost base and *reduced cost base are reduced to nil.

Note: You cannot make a capital loss.

 (4) However, if the amount of the non‑assessable part is not more than the *share's *cost base, that cost base and its *reduced cost base are reduced by the amount of the non‑assessable part.

Exceptions

 (5) A *capital gain you make is disregarded if you *acquired the *CGT asset that is the *share before 20 September 1985.

 (6) You disregard a payment by a liquidator for the purposes of this section if the company is dissolved within 18 months of the payment. The payment will be part of your *capital proceeds for *CGT event C2 happening when the share ends.

104‑140  Shifts in share values: CGT event G2

 (1) CGT event G2 happens if:

 (a) a *share value shift occurs under a *scheme involving a company and an entity (or the entity's *associate); and

 (b) the entity is a *controller (for CGT purposes) of the company at any time from when the scheme is entered into to when it has been implemented; and

 (c) there is a *material decrease in the market value of a share in the company that is owned by the entity or the entity's associate.

Note 1: Other matters relevant to this event are set out in Division 140.

Note 2: Division 140 is also relevant to interests in shares and rights or options to acquire shares: see section 140‑30.

 (2) The time of the event is when the *share value shift happens.

 (3) An entity makes a capital gain in the circumstances set out in sections 140‑55 and 140‑90.

Note 1: The entity cannot make a capital loss.

Note 2: The entity will not make a capital gain unless:

                  * for value shifted into shares acquired before 20 September 1985—value is shifted into shares owned by the entity or an associate or, in certain circumstances, owned by an associate of an associate; or

                  * for value shifted into shares acquired on or after 20 September 1985—value is shifted into shares owned by an associate of the entity or, in certain circumstances, owned by an associate of an associate.

104‑145  Liquidator declares shares worthless: CGT event G3

 (1) CGT event G3 happens if you own a *share in a company and its liquidator declares in writing that he or she has reasonable grounds to believe (as at the time of the declaration) there is no likelihood that the shareholders in the company, or shareholders of the relevant class of shares, will receive any further distribution in the course of winding up the company.

 (2) The time