Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_8:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 8 (pt 6/14)
Character Range: 494123–496770

because of *share value shifts that occur under the *scheme is at least 5%; or

 (b) the total of the decreases in the market value of all shares whose market value decreased because of *share value shifts that occur under the scheme is at least $100,000.

Note: There must be a material decrease in the market value of a share for CGT event G2 to happen: see section 104‑140.

140‑30  Interests in shares etc.

  This Division applies to an interest in a *share, or a right or option to *acquire a share or an interest in a share, in the same way as it applies to a share.

Subdivision 140‑B—Consequences of share value shifting

Guide to Subdivision 140‑B

140‑45  What this Subdivision is about

      A share value shift involves a decrease in the market value of shares acquired on or after 20 September 1985. An entity owning these shares may make a capital gain. There are also rules dealing with cost base adjustments.

Table of sections

Different consequences where share value shift is neutral

140‑50 What if the share value shift is neutral for each shareholder?

Value shifted to shares acquired on or after 20 September 1985

140‑55 Making a capital gain
140‑60 Cost base adjustment for shares decreasing in value
140‑65 Cost base adjustment for shares increasing in value
140‑70 Gain referable to fall in value of shares owned by others
140‑75 Gain referable to fall in value of shares owned by the entity

Value shifted to shares acquired before 20 September 1985

140‑90 Making a capital gain
140‑95 Adjustments to cost base and reduced cost base

[This is the end of the Guide.]

Different consequences where share value shift is neutral

140‑50  What if the share value shift is neutral for each shareholder?

 (1) The consequences of a *share value shift (which are set out in this Subdivision) are different if these requirements are satisfied for each entity owning *shares in the company.

 (2) The *share value shift consists of:

 (a) a decrease in the market value of some of the entity's *shares in the company; and

 (b) one of these:

 (i) an increase in the market value of some of the entity's shares in the company; or

 (ii) the issue of shares at a *discount to the entity.

 (3) The total decrease in market value of the entity's *shares equals:

 (a) the total increase in market value of the entity's shares; or

 (b) the total *discounts given in relation to the entity's shares.

 (4) An entity works out what the consequences of the *share value shift are by disregarding all *shares in the company owned by other entities.

Example: Bill and Bevan are the only shareholders in