Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.784C

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.