Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_1:p17
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 1 (pt 17/18)
Character Range: 257884–260441

having received the down interest's market value worked out as if the buy‑back had not occurred and was never proposed to occur.
 (2) The *adjustable value of the *down interest is not reduced, and there is no *taxing event generating a gain.
Note: The down interest is not dealt with here because it is already dealt with in Division 16K of Part III of the Income Tax Assessment Act 1936.
 (3) Also, to the extent that the *direct value shift is from the *down interest to *up interests of which you are an *affected owner, uplifts in the *adjustable value of the up interests are worked out under either or both of:
 (a) item 8 of the table in subsection 725‑250(2); and
 (b) item 9 of the table in subsection 725‑335(3);
as if the down interest were one owned by another affected owner.

Subdivision 725‑D—Consequences for down interest or up interest as CGT asset

Table of sections
725‑240 CGT consequences; meaning of adjustable value
725‑245 Table of taxing events generating a gain for interests as CGT assets
725‑250 Table of consequences for adjustable values of interests as CGT assets
725‑255 Multiple CGT consequences for the same down interest or up interest

725‑240  CGT consequences; meaning of adjustable value
 (1) The CGT consequences for you of a *direct value shift are of one or more of these 3 kinds:
 (a) there are one or more *taxing events generating a gain for *down interests of which you are an affected owner (see subsection (2));
 (b) the *cost base and *reduced cost base of down interests of which you are an *affected owner are reduced (see subsection (3));
 (c) the cost base and reduced cost base of *up interests of which you are an affected owner are uplifted (see subsection (4)).
Note: If there is a taxing event generating a gain, CGT event K8 happens. See section 104‑240.

Taxing event generating a gain
 (2) To work out:
 (a) whether under the table in section 725‑245 there is a *taxing event generating a gain for you on a *down interest; and
 (b) if so, the amount of the gain;
assume that the adjustable value from time to time of that or any other *equity or loan interest in the *target entity is its *cost base.
Note: For example, for that purpose the question whether the interest has a pre‑shift gain or a pre‑shift loss is determined on the basis that the interest's adjustable value is its cost base.

Reduction or uplift of cost base and reduced cost base
 (3) The *cost base and the *reduced cost base of a *down interest are reduced at the *decrease time to the extent that section 725‑250 provides