Taxation Determination
TD 2004/66A1 - Addendum
Income tax: consolidation: capital gains: can section 104-530 (CGT event L7) of the Income Tax Assessment Act 1997 only apply if an allocable cost amount is worked out for an entity?
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Addendum
This Addendum amends Taxation Determination TD 2004/66 to take into account the changes introduced by Schedule 5 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010.
TD 2004/66 is amended as follows :
Omit the paragraph; substitute:
2. Under section 104-530 (CGT event L7) of the Income Tax Assessment Act 1997 (ITAA 1997), if the amount of a liability taken into account in working out the allocable cost amount (ACA) for an entity that becomes a subsidiary member of a consolidated group is later discharged for a different amount (the realised amount), the head company may make a capital loss. A capital loss will arise if the liability is discharged by the head company on or after 1 July 2002 and before 10 February 2010 and the ACA would have been greater had the realised amount been taken into account in working out the ACA.
Omit 'years commencing both before and after its date of issue'; substitute 'a capital loss under CGT event L7 that arises on or after 1 July 2002 and before 10 February 2010.'.
This Addendum applies on and after 1 July 2002, the date of application of the amendments to the Income Tax Assessment Act 1997 made by Part 12 of Schedule 5 to Tax Laws Amendment (2010 Measures No. 1) Act 2010. The effect of the amendments is that TD 2004/66 will only apply where a capital loss arises under CGT event L7 before 10 February 2010.
Commissioner of Taxation
22 June 2011
References
ATO references:
NO 1-2M1VN9N