INCOME TAX ASSESSMENT ACT 1997 - SECT 104.505 Where pre - formation intra - group roll - over reduction results in negative allocable cost amount: CGT event L2

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INCOME TAX ASSESSMENT ACT 1997 - SECT 104.505

Where pre - formation intra - group roll - over reduction results in negative allocable cost amount: CGT event L2

(1) CGT event L2 happens if:

(a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and

(b) in working out the group's * allocable cost amount for the entity, the amount remaining after applying step 3A of the table in section 705 - 60 is negative.

(2) The time of the event is just after the entity becomes a * subsidiary member of the group.

(3) For the head company core purposes mentioned in subsection 701 - 1(2), the * head company makes a capital gain equal to the amount remaining .

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