Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-L - Consolidated groups and MEC groups  

SECTION 104-520   Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5  

104-520(1)    
CGT event L5 happens if:

(a) an entity ceases to be a *subsidiary member of a *consolidated group or a *MEC group; and

(b) in working out the group ' s *allocable cost amount for the entity, the amount remaining after applying step 4 of the table in section 711-20 is negative.

104-520(2)    
The time of the event is when the entity ceases to be a *subsidiary member of the group.

104-520(3)    
For the head company core purposes mentioned in subsection 701-1(2) , the *head company makes a capital gain equal to the amount remaining.

Note:

The amount remaining may be reduced under section 707-415 .