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 104-510   Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3  

104-510(1)    
CGT 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.