Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 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).

  (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 unallocated amount.

Table of Subdivisions

  Guide to Division   106

106 - A   Partnerships

106 - B   Bankruptcy and liquidation

106 - C   Absolutely entitled beneficiaries

106 - D   Securities, charges and encumbrances