Document ID: chunk:federal_register_of_legislation:C2015A00135:clause:1_11
Version: federal_register_of_legislation:C2015A00135
Segment Type: clause
Provision Reference: sch 1 cl 11
Character Range: 8080–8917

11  Section 124‑784C
Repeal the section, substitute:

124‑784C  Cost base of equity or debt given within acquiring group

Purpose
 (1) This section allocates an appropriate *cost base to equity issued, or new debt owed, under the *arrangement by a member of a *wholly‑owned group to another member (the holder) of the group, if:
 (a) an acquiring entity is a member of the group; and
 (b) the cost base of the acquiring entity for a qualifying interest was worked out under section 124‑784B.

Allocation of cost base
 (2) The first element of the *cost base of the equity or debt for the holder is that part of the cost base of the qualifying interest worked out under section 124‑784B as:
 (a) may be reasonably allocated to the equity or debt; and
 (b) is not more than the *market value of the equity or debt at the completion time.