Item 12 deals with any capital gains or loss made by you, an Australian resident company, where certain capital gains tax events happen to interests held in a foreign company.
Under Subdivision 768-G of the ITAA 1997, the extent of the reduction is determined by calculating the percentage of the foreign company's assets that were used in the underlying active business. The subdivision applies to disposals occurring on or after 1 April 2004.
You need to have held a direct voting percentage of 10% or more in the foreign company for a continuous period of at least 12 months in the two years before the capital gains tax event.
If a capital gain was reduced in accordance with Subdivision 768-G write the amount of the reduction at item 12a in box L.
If a capital loss is reduced in accordance with Subdivision 768-G write the amount of the capital loss that may be used or carried forward at item 12b in box G.