Document ID: chunk:federal_register_of_legislation:C2014C00749:clause:16_1:p12
Version: federal_register_of_legislation:C2014C00749
Segment Type: clause
Provision Reference: sch 16 cl 1 (pt 12/12)
Character Range: 471146–473294

because of the demerger.
Example: The market value of equity or loan interests in the demerging entity may be reduced by the disposal, for inadequate value, of ownership interests of another member of the demerger group to owners of original interests in the head entity of the group.

125‑170  Reduced cost base reduction if demerger asset subject to roll‑over
 (1) The *reduced cost base of a *CGT asset is reduced if:
 (a) the *market value of the asset is reduced because of a *demerger; and
 (b) after the demerger the asset is *acquired by an entity from another entity (the transferor) in a situation where the transferor obtained a roll‑over for the disposal; and
 (c) the reduction occurred when the transferor owned the asset.
 (2) The *reduced cost base of the asset as determined under the roll‑over is reduced just after the roll‑over to the extent of the reduction in *market value caused by the *demerger.
Note: The rules in section 125‑165 and this section deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.
 (3) If the *reduced cost base of a *CGT asset is reduced under this section because of a *demerger, no other adjustment can be made under this Act to that reduced cost base because of something that happens under the demerger.

Subdivision 125‑D—Corporate unit trusts and public trading trusts

Guide to Subdivision 125‑D

125‑225  Guide to Subdivision 125‑D
      This Division applies to corporate unit trusts and public trading trusts as if they were companies.

Table of sections

Operative provisions
125‑230 Application of Division to corporate unit trusts and public trading trusts
[This is the end of the Guide.]

Operative provisions

125‑230  Application of Division to corporate unit trusts and public trading trusts
  This Division applies to a trust to which section 102K or 102S of the Income Tax Assessment Act 1936 applies for an income year in which a *demerger happens as if:
 (a) the trust were a company; and
 (b) *ownership interests in it were interests in a company.

Part 2—Dividend relief

Income Tax Assessment Act 1936