Document ID: chunk:federal_register_of_legislation:C2014A00133:clause:1_1:p5
Version: federal_register_of_legislation:C2014A00133
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/7)
Character Range: 14214–16914

as if that roll‑over were a roll‑over covered by Division 124 (about replacement‑asset roll‑overs).
Note: Those consequences generally involve:
(a) disregarding a capital gain or capital loss you make from the disposal, redemption or cancellation of your shares or units in the original entity; and
(b) working out the first element of the cost base of each of your new shares in the interposed entity by reference to the cost bases of your shares or units in the original entity.

615‑45  Additional consequences—deferral of profit or loss
  The additional consequences in sections 615‑50 and 615‑55 apply if:
 (a) under this Division:
 (i) you are taken to have chosen to obtain the roll‑over; or
 (ii) you otherwise choose to obtain the roll‑over; and
 (b) if subparagraph (a)(ii) applies to you, you choose for these additional consequences to apply; and
 (c) some or all of your *shares or units in the original entity at the time immediately before they were:
 (i) disposed of as described in paragraph 615‑5(1)(c); or
 (ii) redeemed or cancelled as described in paragraph 615‑10(1)(d);
  had the character of being your *trading stock or *revenue assets; and
 (d) the shares in the interposed company that you acquired in return for those shares or units have the same character.
Note 1: Apply this section separately for assets of each character.
Note 2: The CGT exemption for trading stock does not prevent you obtaining the roll‑over (see section 615‑60).

615‑50  Trading stock
 (1) The amount included in your assessable income because of the disposal, redemption or cancellation of each of your *shares or units described in paragraph 615‑45(c) that was your *trading stock at the time mentioned in that paragraph is equal to:
 (a) if the share or unit had been your trading stock ever since the start of the income year that included that time—the total of:
 (i) its *value as trading stock at the start of the income year; and
 (ii) the amount (if any) by which its cost had increased since the start of the income year; or
 (b) otherwise—its cost at that time.
 (2) For each of the *shares that you acquired as described in paragraph 615‑45(d) that is your *trading stock, you are taken to have paid:
 (3) For the purposes of Division 70 (about trading stock), you, the original entity and the interposed company are taken to have dealt with each other in the ordinary course of *business and at *arm's length for each of the transactions referred to in paragraph 615‑5(1)(c) or 615‑10(1)(d) or (e).

615‑55  Revenue assets
 (1) For each of your *shares or units that:
 (a) is described in paragraph 615‑45(c); and
 (b) was a *revenue asset immediately before its disposal, redemption