Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) CGT event L4 happens if:
(a) an entity becomes a * subsidiary member of a * consolidated group or a * MEC group; and
(b) in working out the * tax cost setting amount for assets of the entity in accordance with section 705 - 35 (including in its application in accordance with Subdivisions 705 - B to 705 - D), there is an amount that results after applying paragraphs 705 - 35(1)(b) and (c) (including in their application in accordance with those Subdivisions); and
Note: Section 705 - 35 is about the tax cost setting amount for reset cost base assets.
(c) it is not possible to allocate, in accordance with the latter paragraph, the amount that results because there are no reset cost base assets of the kind mentioned in that paragraph.
(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 loss equal to the amount that results .