Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) an entity ceases to be a subsidiary member of the transitional group; and
(b) just before the transitional group came into existence, the entity that became the head company held a pre - CGT asset; and
(c) that holding of the asset did not occur as a result of a CGT event:
(i) for which there was a roll - over under Subdivision 126 - B of the Income Tax Assessment Act 1997 ; and
(ii) that occurred after 11.45 am by legal time in the Australian Capital Territory on 21 September 1999; and
(d) just before the entity ceases to be a subsidiary member of the group, the asset is still a pre - CGT asset and is held by the head company only because the entity is taken by subsection 701 - 1(1) (the single entity rule) of the Income Tax Assessment Act 1997 to be a part of the head company.
(2) If this section applies, the head company may, in relation to the entity's ceasing to be a subsidiary member, choose that the terminating value for the asset, that is to be used in applying step 1 of the table in section 711 - 20 of the Income Tax Assessment Act 1997 , is equal to its market value just before the transitional group came into existence.