Financial Corporations (Transfer of Assets and Liabilities) Act 1993
17Securities—adjustment of cost base
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17 Securities—adjustment of cost base
Adjustment where security is transferred (1) If: (a) a security is transferred; and (b) either: (i) one or more amounts (other than periodic interest) are or were included in the transferring corporation’s assessable income under former section 25, or under Division 16E of Part III, of the Income Tax Assessment Act 1936 or under section 6‑5 of the Income Tax Assessment Act 1997 in respect of the security; or (ii) one or more amounts (other than periodic interest) are or were allowable as deductions to the transferring corporation under former section 51, or under Division 16E of Part III, of the Income Tax Assessment Act 1936 or under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the security; those Acts have effect as if the amount that, apart from this subsection, would have been the consideration paid or given by the receiving corporation in respect of the acquisition of the security as the result of the transfer were: (c) increased by the amount, or the sum of the amounts, covered by subparagraph (b)(i); and (d) reduced by the amount, or the sum of the amounts, covered by subparagraph (b)(ii). Adjustment where liability under security is transferred (2) If: (a) a liability under a security is transferred; and (b) one or more amounts (other than periodic interest) are or were allowable as deductions to the transferring corporation under former section 51, or under Division 16E of Part III, of the Income Tax Assessment Act 1936 or under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the security; those Acts have effect as if the amount that, apart from this subsection, would have been the consideration paid or given to the receiving corporation in respect of the assumption of the liability as the result of the transfer were increased by the amount, or the sum of the amounts, covered by paragraph (b). Definitions (3) In this section:
periodic interest has the same meaning as in Division 16E of Part III of the Income Tax Assessment Act 1936.
security has the same meaning as in Division 16E of Part III of the Income Tax Assessment Act 1936.