Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:4_4:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 4 cl 4 (pt 1/2)
Character Range: 55629–58351

4                                                            There are both one or more overstated amounts and one or more understated amounts under section 705‑315 for the *subsidiary member and the sum of the overstated amounts is less than the sum of the understated amounts  There is a net understated amount. It is the difference between those sums

 (4) If the time when the Commissioner becomes aware of the errors is within the period within which the Commissioner may amend all of the assessments necessary to correct the errors, then, for the head company core purposes mentioned in subsection 701‑1(2):
 (a) if you have a *net overstated amount—you make a capital gain equal to that amount; or
 (b) if you have a *net understated amount—you make a capital loss equal to that amount.

 (5) If the time when the Commissioner becomes aware of the errors is not within that period, then, for the head company core purposes mentioned in subsection 701‑1(2):
 (a) if you have a *net overstated amount—you make a capital gain of the amount worked out under subsection (6); or
 (b) if you have a *net understated amount—you make a capital loss of the amount worked out under subsection (6).

 (6) The amount of the *capital gain or *capital loss is worked out as follows:
where:

current asset setting amount means the *tax cost setting amount for all assets referred to in subsection 705‑315(2) as reset cost base assets that the *head company of the *consolidated group held continuously from the time when the *subsidiary member joined the group until the start of the head company's income year that is the earliest income year for which the Commissioner could amend the head company's assessment to correct any of the errors.

original asset setting amount means the *tax cost setting amount for all assets referred to in subsection 705‑315(2) as reset cost base assets that the *subsidiary member held at the time it joined the group.

stated amount means the *net overstated amount or the *net understated amount, as the case requires.

104‑530  Discharged amount of liability differs from amount for allocable cost amount purposes: CGT event L7

 (1) CGT event L7 happens if you are the *head company of a *consolidated group and the conditions relating to a liability in subsection (3) are satisfied.

 (2) The time of the event is the start of your income year in which the liability is discharged.

 (3) The conditions are that:
 (a) a liability of an entity that became a *subsidiary member of the group was taken into account in working out your *allocable cost amount for the subsidiary member in accordance with Division 705 (your ACA); and
 (b) the liability was later discharged (whether by the making