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3.7.1. On Asset Values

When a company becomes resident, it is, broadly speaking, treated as having acquired any taxable assets it holds at their market value on the date of acquisition of residence. On the loss of residence, it is deemed to have disposed of such assets. In either case, the acquisition or loss may require adjustments to be made to the cost base of the taxable asset held by the company on the date concerned to determine its taxable value and, in the case of cessation of residence, to enable the accurate determination of the capital gains tax due and payable.