Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 12/35)
Character Range: 3240961–3243497

the group company is a member of the same *wholly‑owned group as the income company (disregarding a period when either was not in existence); and
 (f) a *CGT event happens in relation to the share or debt on or after the commencement of this section; and
 (g) the relevant agreement referred to in section 170‑50 is made on or after that commencement; and
 (h) there are shares in, or debts owed by, the *loss company the *reduced cost base of at least one of which has been reduced by subsection 170‑210(1) or (2);
the *cost base and *reduced cost base of the share or debt are increased in accordance with subsection (3).
 (2) If:
 (a) an amount of a *tax loss is transferred by a company to another company; and
 (b) Subdivision 170‑A applies in respect of the transfer; and
 (c) a company (the group company) holds a *share in another company or is owed a debt by another company in respect of a loan; and
 (d) the group company *acquired the share or debt on or after 20 September 1985; and
 (e) the money that the group company paid for the share, or the borrowed money, has been applied (directly, or indirectly through one or more interposed entities):
 (i) in the other company or a third company acquiring shares in the income company; or
 (ii) in a *borrowing by the income company from the other company or from a third company; and
 (f) throughout the deduction year, the group company, the other company and the third company (if any) are all members of the same *wholly‑owned group as the income company (disregarding, for a particular company, a period when it was not in existence); and
 (g) a *CGT event happens in relation to the share or debt on or after the commencement of this section; and
 (h) the relevant agreement referred to in section 170‑50 is made on or after that commencement; and
 (i) there are shares in, or debts owed by, the *loss company the *reduced cost base of at least one of which has been reduced by subsection 170‑210(1) or (2);
the *cost base and *reduced cost base of the share or debt are increased in accordance with subsection (3).
 (3) The *cost base and *reduced cost base are increased by an amount that is appropriate having regard to:
 (aa) the matters mentioned in subsections 170‑205(3) and (4); and
 (ab) the amounts of any reductions to the cost base and reduced cost base of *shares, and to the reduced cost base of debts, under subsection 170‑210(3); and
 (a) the group company's direct or indirect interest in the income company; and
 (b) the amount of the loss transferred;