Income Tax Assessment Act 1997
View history note
Hide history noteCGT event L3 happens if:
(a) an entity becomes a *subsidiary member of a *consolidated group or a *MEC group; and
(b) the sum of the *tax cost setting amounts for all *retained cost base assets that are taken into account under paragraph 705-35(1)(b) in working out the tax cost setting amount of each reset cost base asset of the entity exceeds the group ' s *allocable cost amount for the entity.
104-510(2)
The time of the event is just after the entity becomes a *subsidiary member of the group.
104-510(3)
For the head company core purposes mentioned in subsection 701-1(2) , the *head company makes a capital gain equal to the excess.
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