Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_7
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 7
Character Range: 184394–185013

7  After subsection 705‑65(3)
Insert:

 (3AA) 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;
they would have made a *capital loss that section 727‑615 would have reduced (because of an indirect value shift), 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.