Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p13
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 13/22)
Character Range: 394202–396736

time.

Choice to be made by company

 (5) The company must choose that the rules in section 124‑470 apply. It must make its choice within 2 months after the completion time, or within such further time as the Commissioner allows.

Note: This is an exception to the general rule about choices in section 103‑25.

Consequences for the company

124‑470  Consequences for the company

 (1) A whole number of the units that the company owns in the unit trust (just after the completion time) are taken to have been *acquired before 20 September 1985 if any of the unit trust's assets as at the completion time were acquired by it before that day.

Note: Generally, a capital gain or capital loss you make from a CGT asset that you acquired before 20 September 1985 can be disregarded: see Division 104.

 (2) The number (worked out as at the completion time) is the greatest possible that (when expressed as a percentage of all the units) does not exceed:

 • the market value of the unit trust's assets that it *acquired before 20 September 1985 less its liabilities (if any) in respect of those assets;

expressed as a percentage of:

 • the market value of all the unit trust's assets less all of its liabilities.

 (3) The first element of the *cost base of the company's units in the unit trust that are not taken to have been *acquired before 20 September 1985 is:

 • the total of the cost bases (as at the completion time) of the unit trust's assets that it acquired on or after that day;

less:

 • its liabilities (if any) in respect of those assets.

 (4) The first element of the *reduced cost base of the company's units is worked out similarly.

 (5) A liability of the unit trust that is not a liability in respect of a specific asset or assets of the trust is taken to be a liability in respect of all the assets of the trust.

Note: An example is a bank overdraft.

 (6) If a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is equal to:

Subdivision 124‑I—Conversion of a body to an incorporated company

124‑520  Conversion of a body to an incorporated company

 (1) You can choose to obtain a roll‑over if:

 (a) you are a member of a body that is incorporated under a law other than *company law; and

 (b) the body is converted into a company incorporated under company law (without creating a new legal entity); and

 (c) the company issues you with *shares (and you receive nothing else) in substitution for your