Pt 3-1 inserted by No 46 of 1998.
Div 104 inserted by No 46 of 1998.
Subdiv 104-L (heading) substituted by No 107 of 2003.
Subdiv 104-L inserted by No 117 of 2002.
S 104-530 repealed by No 56 of 2010, s 3 and Sch 5 item 128. No 56 of 2010, s 3 and Sch 5 item 131 contains the following application provision:
(1) The amendments made by this Part apply on and after 1 July 2002.
(2) However, the amendment does not apply in relation to a CGT event that:
(a) is CGT event L7; and
(b) happens before the day on which the Bill that became this Act was introduced into the House of Representatives; and
(c) gives rise to a capital loss.
S 104-530 formerly read:
SECTION 104-530 Discharged amount of liability differs from amount for allocable cost amount purposes: CGT event L7
104-530(1) CGT event L7 happens if you are the *head company of a *consolidated group or a *MEC group and the conditions relating to a liability in subsection (3) are satisfied.
S 104-530(1) amended by No 107 of 2003.
104-530(2) The time of the event is the start of your income year in which the liability is discharged.
104-530(3) The conditions are that:
(a) a liability of an entity that became a *subsidiary member of the group was taken into account in working out your *allocable cost amount for the subsidiary member in accordance with Division 705 (your ACA); and
(b) the liability was later discharged (whether by the making of a payment or by the release, waiver or other extinguishment of the liability) and the sum (the realised amount) of:
(i) the amount of any payment made to discharge the liability; and
differs from the amount for the liability that was taken into account in working out your ACA; and
(ii) the *market value of any other consideration given to discharge the liability;
(c) that ACA is different to what it would have been (your true ACA) if you had taken the realised amount into account in working out your ACA.
104-530(4) You make a capital gain for the head company core purposes mentioned in subsection 701-1(2) if your ACA would have been smaller had you used the realised amount in working out your ACA. The amount of the gain is the difference between the amount you worked out and your true ACA.
104-530(5) You make a capital loss for the head company core purposes mentioned in subsection 701-1(2) if your ACA would have been greater had you used the realised amount in working out your ACA. The amount of the loss is the difference between the amount you worked out and your true ACA.
S 104-530 inserted by No 16 of 2003.