On 12 October 2007, the Assistant Treasurer announced that the law will be amended to clarify the interaction between the tax consolidation rules and capital gains tax (CGT) rollovers. By way of background, a disposal of membership interests (e.g. shares) in a company constitutes a CGT event and the holder of the interests makes a capital gain or capital loss from the event. However, where the gain or loss is made in the course of certain reorganizations, it may be deferred by operation of rollover provisions. The provisions disregard the gain or loss and transfer cost base of the disposed...