What happens if the cost base of your Arrow shares less the deemed cost price of Dart turns into a negative. Example Cost of original AOE = 20 cents less cost basis Dart 35 cents = (-)15 cents
To pay CGT on something you havent sold yet seems odd also.
Far more sensible way would be to pay CGT on the sale of your Arrow shares based on your purchase price of AOE only. Then when you sell your Dart shares the cost basis is zero. When does ATO make things simple ?
I may be reading it wrong.
Cheers
Mont
AOE Price at posting:
$4.67 Sentiment: None Disclosure: Held
