Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 4/18)
Character Range: 2695747–2698515

of the shares in the subsidiary that are beneficially owned by the holding company;
 (f) one or more of the shares that were cancelled (the post‑CGT shares) must have been acquired by the holding company on or after 20 September 1985.
 (3) The reduction of the *capital gain is worked out in this way.

      Method statement
           Step 1. Work out (disregarding this section) the sum of the *capital gains and the sum of the *capital losses the holding company would make on the cancellation of its shares in the subsidiary.
           Step 2. Work out (disregarding this Subdivision):

                (a) the sum of the *capital gains the subsidiary would make on the *disposal of its CGT roll‑over assets to the holding company; and
                (b) the sum of the *capital losses it would make except for Subdivision 170‑D on the disposal of its *CGT assets to the holding company;

            in the course of the liquidation assuming the *capital proceeds were the assets' *market values at the time of the disposal.
           Step 3. If, after subtracting the sum of the *capital losses from the sum of the *capital gains, there is an overall capital gain from step 1 and an overall capital gain from step 2, then continue. Otherwise there is no adjustment.
           Step 4. Express the number of post‑CGT shares as a fraction of the total number of shares the holding company owned in the subsidiary.
           Step 5. Multiply the overall *capital gain from Step 2 by the fraction from Step 4.
           Step 6. Reduce the overall *capital gain from Step 1 by the amount from Step 5. The result is the *capital gain the holding company makes from the cancellation of its shares in the subsidiary.
Note: This Subdivision is modified in calculating the attributable income of a CFC: see section 419 of the Income Tax Assessment Act 1936.

Subdivision 126‑C—Changes to trust deeds

Guide to Subdivision 126‑C

126‑125  What this Subdivision is about
      This Subdivision sets out when there is a roll‑over for a CGT event that happens because of an amendment to or replacement of the trust deed of a complying approved deposit fund, a complying superannuation fund or a fund that accepts worker entitlement contributions.

Table of sections
126‑130 Changes to trust deeds
126‑135 Consequences of roll‑over

126‑130  Changes to trust deeds
 (1) There is a roll‑over if:
 (a) *CGT event E1 or E2 happens in relation to a *CGT asset because the trust deed of a *complying approved deposit fund or *complying superannuation fund is amended or replaced; and
 (b) the amendment or replacement is done for the purpose of:
 (i) complying with the Superannuation Industry (Supervision) Act 1993; or
 (ii) enabling a *complying approved deposit fund to