Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 716.855

    If:

  (a)   it is necessary for the purposes of this Part to work out the * cost base or * reduced cost base of a * pre - CGT asset owned at a particular time; and

  (b)   before that time:

  (i)   the owner was the recipient company involved in a roll - over under Subdivision   126 - B in relation to a * CGT event that happened in relation to the CGT asset; or

  (ii)   the owner was the transferee in relation to a disposal of the CGT asset to which former section   160ZZO of the Income Tax Assessment Act 1936 applied;

the cost base or reduced cost base is worked out as if, in applying Subdivision   126 - B or former section   160ZZO in relation to the CGT event or the disposal, the provisions of that Subdivision or section applying to CGT assets * acquired on or after 20   September 1985 replaced those that applied to CGT assets acquired on or before that date.

Note:   The effect is that the owner's cost base or reduced cost base will be the same as that of the originating company or transferor, as is the case with post - CGT assets.