Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_6:p8
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 8/26)
Character Range: 193626–196351

than one.

Formula

 (4) The formula is:
where:

leaving entity's pre‑CGT proportion is the amount worked out under subsection (5).

Pre‑CGT proportion

 (5) Work out the leaving entity's pre‑CGT proportion in this way:

      Leaving entity's pre‑CGT proportion
           Step 1. For each *pre‑CGT factor asset, multiply its *market value before the leaving time by its *pre‑CGT factor.
           Step 2. Add up all the results of step 1.
           Step 3. Add up the *market values of all the assets that the *head company holds at the leaving time because the leaving entity is taken by section 701‑1 to be a part of the head company.
           Step 4. Divide the result of step 2 by the result of step 3.

Dealing with classes of membership interests

 (6) If there are 2 or more classes of *membership interests in the leaving entity, this section operates separately in relation to each class as if the interests in that class were all the interests in the entity.

Allocation of the number to particular membership interests

 (7) The *head company must choose which particular *membership interests comprise the number worked out under subsection (2).

711‑70  Membership interests treated as having been acquired before 20 September 1985—multiple exit case

 (1) If 2 or more entities (multiple exit entities) cease to be *subsidiary members of the old group at the same time because of an event happening in relation to one of them, a number of the *membership interests (subject interests) held in any multiple exit entity by:
 (a) *members of the old group; or
 (b) other multiple exit entities; or
 (c) any combination of paragraphs (a) and (b);
are taken to have been acquired before 20 September 1985.

Numbers to be worked out first for bottom entities

 (2) Numbers are to be worked out first for subject interests in multiple exit entities that do not themselves hold any of the subject interests in other multiple exit entities.

Numbers to be worked out progressively up to those subject interests held only by members of the old group

 (3) If the holders of other subject interests are or include multiple exit entities, numbers must be worked out for the former subject interests before both the latter and any subject interests whose holders consist entirely of *members of the old group.

How to work out the numbers

 (4) The number for subject interests in a particular multiple exit entity that is required to be worked out under subsection (2) or (3) is worked out by applying subsections 711‑65(3) to (6) as if:
 (a) a reference in those subsections to *membership interests that members of the old group hold in the leaving entity were a reference to the subject interests; and
 (b)