Income Tax Assessment Act| Apprentice Tax Practitioner Program
138-425 Reduction of cost base of indirect interests in originating company
138-430 Compensatory increases in interests in recipient company
138-435 When adjustment under this Subdivision not required
138-425 Reduction of cost base of indirect interests in originating company
(1) You reduce the
*cost base and *reduced cost base of a *CGT asset you own if:(a) because of owning the asset, you have an indirect interest (through one or more interposed companies or trusts) in a
(b) you owned the asset at the time of the trigger event; and
(c) a
*CGT event happens in relation to the asset.(2) The amount of the reduction is such amount as is reasonable having regard to the reduction in the value of the *CGT asset as a result of the trigger event happening.
138-430 Compensatory increases in interests in recipient company
*cost base and *reduced cost base of a *CGT asset under this section if:(a) the asset is a
(b) the
*cost base or *reduced cost base of a share in or a loan to the originating company has been reduced under Subdivision 138-B, 138-C or 138-D as a result of the trigger event happening; and(c) a
*CGT event happens in relation to the asset.(2) The amount of the increase is such amount as is reasonable having regard to:
(a) the increase in the value of the
(b) the amount of any relevant reductions made under Subdivision 138-B, 138-C or 138-D; and
(c) for the
*cost base—inflation measured by reference to the All Groups Consumer Price Index Number.(3) However, the total increases made under this section in relation to the trigger event cannot exceed the total reductions made under Subdivisions 138-B, 138-C and 138-D in relation to it.
138-435 When adjustment under this Subdivision not required
You do not make an adjustment under this Subdivision if:
(a) Subdivision 138-B, 138-C or 138-D does not apply to the trigger event; or
(b) you
Income Tax Assessment Act| Apprentice Tax Practitioner Program