Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-T - Interactions between this Part and other areas of the income tax law: special rules for MEC groups  

Cancelling loss on realisation event for direct or indirect interest in a subsidiary member of a MEC group

SECTION 719-795   Exception if loss attributable to certain matters  

719-795(1)    
The loss is not reduced if all of it can be shown to be attributable to things other than these:

(a) something that would be reflected in what would, apart from this Part, be an overall loss under section 165-115R or 165-115S , of a ^* member of a ^* MEC group (an excluded group ) because of which the first condition in section 719-775 is satisfied, at an ^* alteration time for that member;

(b) an ^* indirect value shift for which, apart from this Part, a member of an excluded group would be the ^* losing entity or the ^* gaining entity.

719-795(2)    
If only part of the loss can be shown to be attributable to things other than the ones listed in subsection (1), the loss is reduced to the amount of that part.