Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 6/6)
Character Range: 302745–304538

or assets of the *business (as appropriate).

Note: There are rules for working out what are the liabilities in respect of an asset: see section 122‑37.

 (2) The *shares cannot be *redeemable shares.

 (3) The market value of the *shares you receive for the trigger event happening must be substantially the same as:

 (a) for a disposal case—the market value of the asset or assets you disposed of, less any liabilities the company undertakes to discharge in respect of the asset or assets (as appropriate); or

 (b) for another trigger event (a creation case)—the market value of the CGT asset created in the company (the created asset).

 (4) In working out if the requirement in paragraph (3)(a) is satisfied, if the market value of the *shares is different to what it would otherwise be only because of the possibility of liabilities attaching to the asset or assets, disregard the difference.

Note: The company may have to pay income tax if an amount is included in its assessable income because of a CGT event happening to an asset you disposed of, or it may have a liability because of accrued leave entitlements of employees. The market value of the shares will reflect these contingent liabilities.

122‑25  Other requirements to be satisfied

 (1) You must own all the *shares in the company just after the time of the trigger event.

Note: You must own the shares in the same capacity as you owned or created the assets that the company now owns.

 (2) This Subdivision does not apply to the *disposal or creation of any of the assets specified in this table:

Assets to which Subdivision does not apply
Item                                        In this situation:                                                                This Subdivision does not apply to: