INCOME TAX ASSESSMENT ACT 1997 - SECT 122.60 Assets acquired before and after 20 September 1985

INCOME TAX ASSESSMENT ACT 1997 - SECT 122.60

  (1)   If you * acquired some of the assets on or after 20   September 1985, you are taken to have acquired a whole number of the * shares (but not all of them) before that day. The number is the greatest possible that (when expressed as a percentage of all the shares) does not exceed:

•   the total of the * market values of the assets (except any * precluded assets) that you acquired before that day, less any liabilities the company undertakes to discharge in respect of those assets;

expressed as a percentage of:

•   the total of the market values of all the assets, less any liabilities the company undertakes to discharge in respect of those assets.

  (2)   The first element of each other * share's * cost base is the sum of the * market values of the * precluded assets and the cost bases of the other assets that you * acquired on or after that day (less any liabilities the company undertakes to discharge in respect of all of those assets) divided by the number of those other shares.

Note:   There are special indexation rules for roll - overs: see Division   114.

  (3)   The first element of each other * share's * reduced cost base is worked out similarly.

  (4)   The * market value of an asset is worked out when you * disposed of it. The * cost base or * reduced cost base of an asset is worked out at the same time.