Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 310.60

Consequences for transferring entity

  (1)   The transferring entity may disregard any * capital gain or * capital loss for a transfer event relating to an original asset to which this section applies.

Note:   This section only applies if it is chosen to apply under subsection   310 - 50(2).

  (2)   Subsections   (3), (4) and (5) apply if under subsection   (1) the transferring entity disregards a * capital gain or * capital loss for a transfer event relating to an original asset.

  (3)   The transferring entity's * capital proceeds from the transfer event are taken to be an amount equal to:

  (a)   if, apart from this subsection, the event would result in a * capital gain--the asset's * cost base just before the event; or

  (b)   if, apart from this subsection, the event would result in a * capital loss--the asset's * reduced cost base just before the event.

Consequences for receiving entity

  (4)   The first element of the * cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event.

  (5)   The first element of the * reduced cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event.