INCOME TAX ASSESSMENT ACT 1997 - SECT 124.784 Cost base of equity or debt given within acquiring group

INCOME TAX ASSESSMENT ACT 1997 - SECT 124.784

Purpose

  (1)   This section allocates an appropriate * cost base to equity issued, or new debt owed, under the * arrangement, by a member of a * wholly - owned group to another member (the recipient ) of the group, if:

  (a)   the acquiring entity is a member of the group; and

  (b)   the cost base of an original interest was transferred or allocated under section   124 - 782 because the original interest holder is a * significant stakeholder or a * common stakeholder for the arrangement.

Allocation of cost base

  (2)   The first element of the * cost base of the equity or debt for the recipient is that part of the cost base of the original interest transferred or allocated under section   124 - 782 as:

  (a)   may be reasonably allocated to the equity or debt; and

  (b)   is not more than the * market value of the equity or debt just after the * arrangement was completed.