Capital gains tax: Demerger of foreign company - cost base of shares received - Australian resident shareholder

Acquisition costs - the total of any money the taxpayer paid or is required to pay in respect of acquiring the asset and/or any property that the taxpayer gave or is required to give in respect of acquiring it; 2. Incidental costs - cover both incidental costs to acquire the CGT asset and incidental costs that relate to the CGT event (eg disposal of the asset); 3. Non-capital costs of ownership - for assets acquired after 20 August 1991. These include , but are not limited to, interest on money borrowed to acquire the asset or to refinance such a borrowing , interest on money borrowed to refinance capital improvements to the asset, repairs and maintenance, insurance premiums, rates and land taxes; 4. Capital expenditure to increase value - the costs are included provided it is reflected in the state or nature of the asset at the time of the CGT event; 5. Capital expenditure to establish or defend title to or a right over an asset.