Commonwealth Consolidated Acts Commonwealth Consolidated ActsWhen this section applies
(1) This section applies unless:
(a) Subdivision 705 - C (about one group joining another consolidated group) applies in relation to the old group; and
(b) the leaving entity is a * subsidiary member of the old group.
(1A) To avoid doubt, this section applies regardless of whether the leaving entity ceases to be a * subsidiary member of the old group at the leaving time because another entity also ceases to be a subsidiary member of the old group at the leaving time.
Interests treated as if purchased before 20 September 1985
(2) If this section applies, a number of the * membership interests in the leaving entity that * members of the old group hold are taken to have been acquired before 20 September 1985.
Number of pre - CGT membership interests
(3) The number is the result of the formula in subsection (4), rounded down to:
(a) the nearest whole number if the result is not already a whole number; or
(b) zero if the result is a number more than zero but less than one.
(4) The formula is:
where:
"leaving entity's pre-CGT proportion" is the amount worked out under section 705 - 125.
Dealing with classes of membership interests
(6) If there are 2 or more classes of * membership interests in the leaving entity, this section operates separately in relation to each class as if the interests in that class were all the interests in the entity.
Allocation of the number to particular membership interests
(7) The * head company must choose which particular * membership interests comprise the number worked out under subsection (2).
Modification if leaving entity is a trust
(8) If the leaving entity is a trust, a * membership interest in it is not taken into account under this section unless the membership interest is either a unit or an interest in the trust.