Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 14/35)
Character Range: 3245559–3248080

respect of the transfer; and
 (c) a company (the group company) holds a *share in the loss company or is owed a debt by the loss company in respect of a loan; and
 (d) the group company *acquired the share or debt on or after 20 September 1985; and
 (e) throughout the application year, the group company is a member of the same *wholly‑owned group as the loss company (disregarding a period when either was not in existence); and
 (f) the relevant agreement referred to in section 170‑150 is made on or after the commencement of this section;
the *cost base and *reduced cost base of the share or the reduced cost base of the debt is reduced in accordance with subsection (3).
 (2) If:
 (a) an amount of a *net capital loss is transferred by a company to another company; and
 (b) Subdivision 170‑B 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 loss company; or
 (ii) in a *borrowing by the loss company from the other company or from a third company; and
 (f) throughout the application year, the group company, the other company and the third company (if any) are all members of the same *wholly‑owned group as the loss company (disregarding, for a particular company, a period when it was not in existence); and
 (g) the relevant agreement referred to in section 170‑150 is made on or after the commencement of this section;
the *cost base and *reduced cost base of the share or the reduced cost base of the debt is reduced in accordance with subsection (3).
 (3) The *cost base and *reduced cost base of the share or the reduced cost base of the debt is reduced by an amount that is appropriate having regard to:
 (aa) the main object of this Subdivision and other matters mentioned in subsections 170‑205(1) and (2); and
 (a) the group company's direct or indirect interest in the loss company; and
 (ba) any reduction in the reduced cost base made under Subdivision 165‑CD; and
 (b) the amount of the loss transferred; and
 (c) the extent to which the loss reduced the *market value of the share or debt; and
 (d) any consideration received by the loss company for the