Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p77
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 77/95)
Character Range: 5746908–5749614

or loss on a future disposal, cessation of ownership, or other realisation of a *share that:
 (a) you acquired as described in paragraph 615‑45(d); and
 (b) is a *revenue asset;
you are taken to have paid the following for your acquisition of that share:

615‑60  Disregard CGT exemption for trading stock
  For the purposes of this Division, disregard section 118‑25 (which gives a CGT exemption for trading stock).

Subdivision 615‑D—Consequences for the interposed company

Table of sections
615‑65 Consequences for the interposed company

615‑65  Consequences for the interposed company
 (1) This section applies if the interposed company so chooses under subsection 615‑30(1).
 (2) A number of the *shares or units that the interposed company owns in the original entity (immediately after the completion time) are taken to have been *acquired before 20 September 1985 if any of the original entity'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.
 (3) That number (worked out as at the completion time) is the greatest possible whole number that (when expressed as a percentage of all the *shares or units) does not exceed:
 (a) the *market value of the original entity's assets that it *acquired before 20 September 1985; less
 (b) its liabilities (if any) in respect of those assets;
expressed as a percentage of the market value of all the original entity's assets less all of its liabilities.
 (4) The first element of the *cost base of the interposed company's *shares or units in the original entity that are not taken to have been *acquired before 20 September 1985 is:
 (a) the total of the cost bases (as at the completion time) of the original entity's assets that it acquired on or after that day; less
 (b) its liabilities (if any) in respect of those assets.
The first element of the *reduced cost base of those shares or units is worked out similarly.
 (5) A liability of the original entity that is not a liability in respect of a specific asset or assets of the original entity is taken to be a liability in respect of all the assets of the original entity.
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:

Division 620—Assets of wound‑up corporation passing to corporation with not significantly different ownership

Table of Subdivisions
620‑A Corporations covered by Subdivision 124‑I

Subdivision 620‑A—Corporations covered by Subdivision 124‑I

Guide to Subdivision