Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 1/2)
Character Range: 1923273–1926283

4                                              For the fifth income year ending after the entity became a *subsidiary member, or for any later income year  The difference between:
                                                                                                                                                            (a) the *capital loss; and
                                                                                                                                                            (b) the sum of the amount mentioned in paragraph (b) of item 1 and the amounts of the event L1 attributable loss that were applied to reduce the entity's *capital gains for earlier income years ending after the first income year.

104‑505  Where pre‑formation intra‑group roll‑over reduction results in negative allocable cost amount: CGT event L2
 (1) CGT event L2 happens if:
 (a) an entity becomes a *subsidiary member of a *consolidated group or a *MEC group; and
 (b) in working out the group's *allocable cost amount for the entity, the amount remaining after applying step 3A of the table in section 705‑60 is negative.
 (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 gain equal to the amount remaining.

104‑510  Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3
 (1) CGT event L3 happens if:
 (a) an entity becomes a *subsidiary member of a *consolidated group or a *MEC group; and
 (b) the sum of the *tax cost setting amounts for all *retained cost base assets that are taken into account under paragraph 705‑35(1)(b) in working out the tax cost setting amount of each reset cost base asset of the entity exceeds the group's *allocable cost amount for the entity.
 (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 gain equal to the excess.

104‑515  Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4
 (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