Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 104.535

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

             (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

Guide to Division 106



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