Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 10/19)
Character Range: 5858848–5861485

the joining entity would need to receive, if it were to dispose of the asset just before the joining time, without an amount being assessable income of, or deductible to, the joining entity under section 159GS of the Income Tax Assessment Act 1936.

Depreciating assets
 (3) If an asset of the joining entity is a *depreciating asset to which Division 40 applies, the joining entity's terminating value for the asset is equal to the asset's *adjustable value just before the joining time.

Financial arrangements to which Subdivision 250‑E applies
 (3A) If an asset of the joining entity is a *financial arrangement to which Subdivision 250‑E applies, the joining entity's terminating value for the asset is equal to the amount of consideration that the joining entity would need to receive, if it were to dispose of the asset just before the joining time, without an amount being assessable income of, or deductible to, the joining entity under Subdivision 250‑E.

Division 230 financial arrangements
 (3B) If an asset of the joining entity is or is part of a *Division 230 financial arrangement, the joining entity's terminating value for the asset is equal to the amount of consideration that the joining entity would need to receive, if it were to dispose of the asset just before the joining time, without an amount being assessable income of, or deductible to, the joining entity under Division 230.

Other CGT assets
 (4) If an asset of the joining entity is a *CGT asset that is not covered by any of the above subsections, the joining entity's terminating value for the asset is equal to the asset's *cost base just before the joining time.

Other assets
 (5) The joining entity's terminating value for any other asset that it holds is the amount that would be the asset's *cost base just before the joining time if it were an asset covered by subsection (4).

705‑35  Tax cost setting amount for reset cost base assets
 (1) For each asset of the joining entity (a reset cost base asset) that is not a *retained cost base asset, the asset's *tax cost setting amount is worked out by:
 (a) first working out the joined group's *allocable cost amount for the joining entity in accordance with section 705‑60; and
 (b) then reducing that amount by the total of the *tax cost setting amounts for each retained cost base asset (but not below zero); and
 (c) finally, allocating the result to each of the joining entity's reset cost base assets in proportion to their *market values.
Note 1: For an asset consisting of an entitlement to receive an amount that will be included in assessable income, the market value of the asset would