CGT event |
Time of event |
Capital gain |
Capital loss |
---|---|---|---|
L1 Reduction under section 705-57 in tax cost setting amount of assets of entity becoming subsidiary member of consolidated group |
just after entity becomes subsidiary member |
no capital gain |
amount of reduction |
L2 Amount remaining after step 3A etc of 'joining allocable cost amount is negative' |
just after entity becomes subsidiary member |
amount remaining |
no capital loss |
L3 Tax cost setting amounts for retained cost base assets exceed joining allocable cost amount |
just after entity becomes subsidiary member |
amount of excess |
no capital loss |
L4 No reset cost base assets against which to apply excess of net allocable cost amount on joining |
just after entity becomes subsidiary member |
no capital gain |
amount of excess |
L5 Amount remaining after step 4 of 'leaving allocable cost amount is negative' |
when entity ceases to be subsidiary member |
amount remaining |
no capital loss |
L6 Error in calculation of tax cost setting amount for joining entity's assets |
start of the income year when the Commissioner becomes aware of the errors |
the net overstated amount resulting from the errors, or a portion of that amount |
the net understated amount resulting from the errors, or a portion of that amount |
L7 Discharged amount of liability differs from amount for allocable cost amount purposes |
start of the income year in which the liability is realised |
your allocable cost amount less what it would have been had you used the correct amount for liability |
what your allocable cost amount would have been had you used the correct amount for the liability less your allocable cost amount |
L8 Reduction in tax cost setting amount for reset cost base assets on joining cannot be allocated |
just after entity becomes subsidiary member |
no capital gain |
amount of reduction that cannot be allocated |
Consolidations
Last updated 3 March 2016
QC27527