(2) Subsections (3), (4) and (5) apply if under subsection (1) the transferring entity disregards a gain or loss for a *capital *capital transfer event relating to an original asset. (3) The transferring entity’s proceeds from the transfer event *capital are taken to be an amount equal to: (a) if, apart from this subsection, the event would result in a gain—the asset’s base just before the event; or *capital *cost (b) if, apart from this subsection, the event would result in a loss—the asset’s cost base just before the *capital *reduced event. Consequences for receiving entity (4) The first element of the base of the corresponding received *cost asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event. (5) The element of the cost base of the corresponding *reduced received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event. 31065 Revenue assets—if global asset approach chosen Consequences for transferring entity (1) For each of the original assets to which this section applies, the transferring entity’s gross proceeds for the relevant transfer event are taken to be the amount (the the transferring deemed proceeds) entity would need to have received in order to have a nil profit and nil loss for the event. Note: This section only applies if it is chosen to under subsection 31050(3). Consequences for receiving entity (2) For each of the received assets to which this section applies, the receiving entity is taken, for the purposes of this Act, to have paid
(2) Subsections (3), (4) and (5) apply if under subsection (1) the transferring entity disregards a *capital gain or *capital loss for a transfer event relating to an original asset. (3) The transferring entity’s *capital proceeds from the transfer event are taken to be an amount equal to: (a) if, apart from this subsection, the event would result in a *capital gain—the asset’s *cost base just before the event; or (b) if, apart from this subsection, the event would result in a *capital loss—the asset’s *reduced cost base just before the event. Consequences for receiving entity (4) The first element of the *cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event. (5) The element of the *reduced cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event. 31065 Revenue assets—if global asset approach chosen Consequences for transferring entity (1) For each of the original assets to which this section applies, the transferring entity’s gross proceeds for the relevant transfer event are taken to be the amount (the deemed proceeds) the transferring entity would need to have received in order to have a nil profit and nil loss for the event. Note: This section only applies if it is chosen to under subsection 31050(3). Consequences for receiving entity (2) For each of the received assets to which this section applies, the receiving entity is taken, for the purposes of this Act, to have paid
Income_Tax_Assessment_Act_1997_Super_Extract-1.docx