INCOME TAX ASSESSMENT ACT 1997 - SECT 716.855 Working out the cost base or reduced cost base of a pre - CGT asset after certain roll - overs
INCOME TAX ASSESSMENT ACT 1997 - SECT 716.855
Working out the cost base or reduced cost base of a pre - CGT asset after certain roll - overs(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
(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.