Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:15_3:p6
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 15 cl 3 (pt 6/10)
Character Range: 367428–370113

would, apart from this Division, be *realised for income tax purposes by the event.

727‑635  Splitting an equity or loan interest
  If an *equity or loan interest in the *losing entity or in the *gaining entity is split into 2 or more equity or loan interests at or after the *IVS time:
 (a) each of the 2 or more interests inherits whatever characteristics would have been relevant to applying this Subdivision to the first interest if the split had not happened; and
 (b) those characteristics include characteristics the first interest has inherited because of any other application or applications of this section or section 727‑640; and
 (c) if a characteristic of the first interest involves an amount or quantity, the amount or quantity for that characteristic as inherited by each of the 2 or more interests is a reasonable proportion of the amount or quantity for that characteristic of the first interest.

727‑640  Merging equity or loan interests
  If 2 or more *equity or loan interests (the original interests) in the *losing entity or in the *gaining entity are merged into 1 or more *equity or loan interests (the new interests) at or after the *IVS time:
 (a) each of the new interests inherits whatever characteristics would have been relevant to applying this Subdivision to the original interests if the merging had not happened; and
 (b) those characteristics include characteristics inherited by any of the original interests because of any other application or applications of this section or section 727‑635; and
 (c) if a characteristic of any of the original interests involves an amount or quantity, the amount or quantity for that characteristic as inherited by any of the new interests is a reasonable proportion of the amount or quantity for that characteristic of the original interest.

727‑645  Effect of CGT roll‑over
 (1) If:
 (a) this Subdivision applies to a *realisation event that is a *CGT event that happens to an *affected interest in the *losing entity; and
 (b) section 727‑615 reduces a loss that would, apart from this Division, be *realised for income tax purposes by the CGT event; and
 (c) there is a roll‑over for the CGT event;
the interest's *reduced cost base at the time of the CGT event is taken to have been reduced by the amount by which section 727‑615 reduces that loss, but is so taken only for the purposes of working out:
 (d) the interest's reduced cost base, from time to time after the roll‑over, for the entity that *acquired the interest because of the CGT event; and
 (e) in the case of a *replacement‑asset roll‑over—the reduced cost base of the replacement CGT asset, from time to time after the roll‑over, for the