INCOME TAX ASSESSMENT ACT 1997 - SECT 315.80 Cost base and acquisition time of demutualisation assets

INCOME TAX ASSESSMENT ACT 1997 - SECT 315.80

Cost base adjustment

  (1)   The first element of the * cost base and * reduced cost base of a * CGT asset is its * market value on the day it is issued if:

  (a)   the asset is covered by section   315 - 85 (a demutualisation asset ); and

  (b)   the asset is issued to an entity (a participating policy holder ) covered by section   315 - 90.

Note:   There is an exception to this rule in Subdivision   315 - D where the asset is a share or right in a holding company with other assets.

Acquisition rule

  (2)   The participating policy holder is taken to have * acquired the demutualisation asset at the time it is issued.