• Consolidations

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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

    Last modified: 04 Mar 2016QC 27527