33XCapital gains tax—assets acquired on or after 20 September 1985

#### 33X Capital gains tax—assets acquired on or after 20 September 1985 (1) This section applies in relation to an asset that: (a) was acquired by the Authority on or after 20 September 1985; and (b) is acquired by the receiving subsidiary on the re‑organisation day. (2) For the purposes of calculating whether, under Part IIIA of the Assessment Act, a capital gain accrues to, or a capital loss is incurred by, the receiving subsidiary on the disposal of the asset by the subsidiary, the subsidiary is taken to have paid as consideration for the acquisition of the asset an amount calculated in accordance with this section. (3) If it is necessary to determine whether a capital gain has accrued, the consideration paid by the subsidiary for the acquisition of the asset is to be taken to have been: (a) if the market value of the asset on the re‑organisation day is greater than the amount that would have been the indexed cost base (indexed cost base) to the Authority for the purposes of Part IIIA of the Assessment Act if that Part had applied in respect of that disposal by the Authority to the receiving subsidiary—an amount equal to the market value of the asset; or (b) in any other case—an amount equal to the amount that would have been the indexed cost base. (4) Where it is necessary to determine whether a capital loss has been incurred, the consideration paid by the subsidiary for the acquisition of the asset is to be taken to have been: (a) if the market value of the asset on the re‑organisation day is less than the amount that would have been the reduced cost base (reduced cost base) to the Authority for the purposes of Part IIIA of the Assessment Act if that Part had applied in respect of that disposal by the Authority to the receiving subsidiary—an amount equal to the market value of the asset; or (b) in any other case—an amount equal to the amount that would have been the reduced cost base. (5) If the transferred asset is disposed of by the receiving subsidiary within 12 months of its acquisition by the Authority, subsection (3) has effect as if the references in that subsection to the indexed cost base to the Authority in relation to the asset were references to the cost base to the Authority in relation to the asset. (6) Unless the contrary intention appears, expressions used in this section and in Part IIIA of the Assessment Act have the same respective meanings as in that Part.