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 104-535   Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8  

104-535(1)  
CGT event L8 happens if:


(a) an entity becomes a *subsidiary member of a *consolidated group or a *MEC group; and


(b) the *tax cost setting amount for a reset cost base asset of the entity is reduced under subsection 705-40(1) (including in its application in accordance with Subdivisions 705-B to 705-D ); and


(c) some or all (the unallocated amount ) of the reduction cannot be allocated as mentioned in subsection 705-40(2) .

104-535(2)  
The time of the event is just after the entity becomes a *subsidiary member of the group.

104-535(3)  
For the head company core purposes mentioned in subsection 701-1(2) , the *head company makes a capital loss equal to the unallocated amount.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.