Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p47
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 47/53)
Character Range: 3027039–3029625

of Division 70 would have exceeded its *market value at the earlier time or at one of the earlier times;
its cost for the purposes of Division 70 is taken to be its market value at the earlier time or the smallest of its market values at the earlier times.

Reduction of proceeds of disposal of trading stock
 (10) If:
 (a) an equity or debt was an item of *trading stock of the affected entity immediately before a relevant time or became such an item of trading stock after a relevant time; and
 (b) the equity or debt is *disposed of by the entity after the relevant time concerned; and
 (c) the equity or debt is an item of trading stock of the affected entity at the time of the disposal; and
 (d) the proceeds of the disposal exceed the *market value of the equity or debt immediately before the relevant time concerned or the market value of the equity or debt immediately before any previous relevant time;
the proceeds of the disposal are taken to be reduced by so much of the amount or the total of the amounts of any reductions made by any previous application or applications of subsection (5) in relation to the affected entity in respect of the equity or debt as does not exceed the excess amount or the greater or greatest of the excess amounts referred to in paragraph (d).

165‑115ZB  Adjustment amounts for the purposes of section 165‑115ZA
 (1A) This section has effect for the purposes of:
 (a) section 165‑115ZA; and
 (b) sections 715‑255 and 715‑270 (about effect of alteration time for head company on membership interests of leaving entity just before leaving time).

Calculation of adjustment amount
 (1) An adjustment amount in relation to an equity or debt is to be worked out by the affected entity, and applied by it in making reductions:
 (a) if subsection (2) applies—in accordance with subsection (3); or
 (b) otherwise—in accordance with subsection (6).

Selection of method of calculation
 (2) This subsection applies if:
 (a) the affected entity has a relevant equity interest, but does not have a relevant debt interest, in the *loss company immediately before the alteration time and:
 (i) all the *shares in the loss company are of the same class and have the same *market value; and
 (ii) the equity consists only of a share or shares in the loss company; or
 (b) the affected entity has both a relevant equity interest, and a relevant debt interest under subsection 165‑115Y(1), in the loss company immediately before the alteration time and:
 (i) all the shares in the loss company are of the same class and have the same market value; and
 (ii)