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

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.