(1) For an entity (the transferor ) that owns a * CGT asset, the CGT asset is a direct roll - over replacement for something (the underlying asset ) that another entity owns if, and only if:
(a) a * CGT event happened to the underlying asset while the transferor owned it; and
(b) the other entity * acquired the underlying asset as a result of that CGT event; and
(c) there was a * replacement - asset roll - over for the CGT event; and
(d) the transferor received the CGT asset (or CGT assets including it) in respect of the CGT event as the replacement asset (or the replacement assets).
(2) For an entity (the transferor ) that owns a * CGT asset, the CGT asset is an indirect roll - over replacement for something (the underlying asset ) that another entity owns if, and only if:
(a) a * CGT event happened to another CGT asset at a time when the transferor owned it and the other entity already owned the underlying asset; and
(b) for the transferor, the other CGT asset was at that time:
(i) a * direct roll - over replacement for the underlying asset; or
(ii) an indirect roll - over replacement for the underlying asset because of any other application or applications of this subsection; and
(c) there was a * replacement - asset roll - over for the CGT event; and
(d) the transferor received the first CGT asset (or CGT assets including it) in respect of the CGT event as the replacement asset (or the replacement assets).
Table of Subdivisions
Guide to Division 725
725 - A Scope of the direct value shifting rules
725 - B What is a direct value shift
725 - C Consequences of a direct value shift
725 - D Consequences for down interest or up interest as CGT asset
725 - E Consequences for down interest or up interest as trading stock or a revenue asset
725 - F Value adjustments and taxed gains