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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    View history reference

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

 View history reference

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.


 



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