Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:8_8:p9
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 8 cl 8 (pt 9/10)
Character Range: 123294–125853

and
 (c) the *market value of the reset interests as a whole (including the market value of synergies arising from the combination of those interests) just before the trigger time is more than nil.

Object

 (2) The object of this Subdivision is to set the cost of all reset interests:
 (a) first, by allocating to each reset interest held in a trigger company so much of the total cost of all reset interests held in members of the group that the *market value of the interest bears to the group's market value; and
 (b) then, by allocating the remainder of that total cost to all reset interests held in other *eligible tier‑1 companies, by dividing that remainder by the number of those interests.

719‑560  Pooled interests

 (1) A pooled interest in an *eligible tier‑1 company that is a member of a *MEC group is a *membership interest in the eligible tier‑1 company that is held by an entity that is not a member of the group.

Note: A membership interest in the head company of a MEC group can be a pooled interest.

 (2) Despite subsection (1), a *membership interest is not a pooled interest if it is:
 (a) a *share that is disregarded under subsection 719‑30(2); or
 (b) held by an entity only as a nominee of one or more other entities each of which is a member of the group.

719‑565  Setting cost of reset interests

CGT provisions—cost base

 (1) If Part 3.1 or 3.3 is to apply in relation to a reset interest, the Part applies as if the interest's *cost base were increased or reduced so that the cost base just before the trigger time equals the cost setting amount worked out under section 719‑570.

CGT provisions—reduced cost base

 (2) If Part 3.1 or 3.3 is to apply in relation to a reset interest, the Part applies as if the interest's *reduced cost base were increased or reduced so that the reduced cost base just before the trigger time equals the cost setting amount worked out under section 719‑570.

Other provisions

 (3) If a provision of this Act (other than Part 3.1 or 3.3) is to apply in relation to a reset interest, the provision applies as if the interest's cost just before the trigger time were equal to the cost setting amount worked out under section 719‑570.

719‑570  Cost setting amount

Reset interests held in trigger companies—cost setting amount for cost base etc.

 (1) Work out the cost setting amount for the purposes of subsections 719‑565(1) and (3) for a reset interest in a trigger company using the formula:
where:

market value of the group is:
 (a) if every *eligible tier‑1 company that is a