Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:4_4:p4
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 4 cl 4 (pt 4/10)
Character Range: 68792–71523

of the cost of acquiring the acquired group are taken into account in working out the acquiring group's *allocable cost amount for the acquired group.

Certain rights or options relating to the acquired group to be treated in same way as membership interests under step 1 of allocable cost amount

 (2) Subsection 705‑65(6) has effect as if it also treated as a *membership interest in the *head company of the acquired group a right or option (including a contingent right or option), created or issued by a *subsidiary member of the acquired group, to acquire a membership interest in the subsidiary member, where that right or option was held at the acquisition time by a *member of the acquiring group.

705‑200  Modified application of section 705‑85

Object

 (1) The object of this section is to ensure that if either of the following are not held by *members of either group:
 (a) certain employee share interests in *subsidiary members of the acquired group;
 (b) certain rights or options to acquire *membership interests in subsidiary members of the acquired group;
and are therefore part of the cost of acquiring the acquired group, they increase the acquiring group's *allocable cost amount for the acquired group.

Increase for certain membership interests in subsidiary members of acquired group

 (2) Subsections 705‑85(1) and (2) have effect as if a *membership interest in a *subsidiary member of the acquired group were a membership interest in the *head company of that group.

Increase for certain rights and options to acquire membership interests in subsidiary members of acquired group

 (3) Paragraph 705‑85(3)(a) has effect as if it also increased the step 2 amount worked out under section 705‑70 by the *market value of any right or option (including a contingent right or option), created or issued by a *subsidiary member the acquired group, to acquire a *membership interest in the subsidiary member, where that right or option was held at the acquisition time by a person other than a *member of the acquiring group or acquired group.

705‑205  Modified application of section 705‑125

Object

 (1) The object of this section is to make it clear that, in view of the fact that *pre‑CGT factors are worked out for assets of the acquired group on acquisition by the acquiring group, pre‑CGT factors formerly worked out for assets of entities when they became *subsidiary members of the acquired group cease to have any relevance.

Pre‑CGT factors for assets of members on joining acquired groups no longer relevant

 (2) Section 705‑125 (which provides for a pre‑CGT factor to be worked out for assets of the acquired group) has effect as if a note were added at the end of the section stating