Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p55
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 55/59)
Character Range: 2668524–2671278

entity from another entity (the transferor) in a situation where the transferor obtained a roll‑over for the disposal; and
 (c) the reduction occurred when the transferor owned the asset.
 (2) The *reduced cost base of the asset as determined under the roll‑over is reduced just after the roll‑over to the extent of the reduction in *market value caused by the *demerger.
Note: The rules in section 125‑165 and this section deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.
 (3) If the *reduced cost base of a *CGT asset is reduced under this section because of a *demerger, no other adjustment can be made under this Act to that reduced cost base because of something that happens under the demerger.

Subdivision 125‑D—Public trading trusts

Guide to Subdivision 125‑D

125‑225  Guide to Subdivision 125‑D
      This Division applies to corporate unit trusts and public trading trusts as if they were companies.

Table of sections

Operative provisions
125‑230 Application of Division to public trading trusts

Operative provisions

125‑230  Application of Division to public trading trusts
  This Division applies to a trust to which section 102S of the Income Tax Assessment Act 1936 applies for an income year in which a *demerger happens as if:
 (a) the trust were a company; and
 (b) *ownership interests in it were interests in a company.

Subdivision 125‑E—Miscellaneous

Table of sections
125‑235 Share and interest sale facilities

125‑235  Share and interest sale facilities

Share and interest sale facilities
 (1) An entity (the investor) is treated as owning an *ownership interest (the roll‑over interest) in a *demerged entity at a time (the deeming time), if:
 (a) the investor owned an ownership interest in a company or trust that was the *head entity of a *demerger group; and
 (b) a *demerger happens to the demerger group; and
 (c) because:
 (i) a *foreign law impedes the ability of a member of the demerger group to issue or transfer the roll‑over interest to the investor; or
 (ii) it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of a member of the demerger group to issue or transfer the roll‑over interest to the investor;
  it is *arranged that the member will issue or transfer the roll‑over interest to another entity (the facility) under the demerger instead of to the investor; and
 (d) in accordance with that arrangement and as a result of the demerger, the facility:
 (i) becomes the owner of the roll‑over interest (which is a new or replacement interest in the demerged entity); and
 (ii) owns the roll‑over interest at the deeming time; and
 (e) under the arrangement, the investor