Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/2)
Character Range: 1926057–1928213

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 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 amount that results.

104‑520  Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5
 (1) CGT event L5 happens if:
 (a) an entity ceases to be 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 4 of the table in section 711‑20 is negative.
 (2) The time of the event is when the entity ceases to be 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.
Note: The amount remaining may be reduced under section 707‑415.

104‑525  Error in calculation of tax cost setting amount for joining entity's assets: CGT event L6
 (1) CGT event L6 happens if:
 (a) you are the *head company of a *consolidated group or a *MEC group; and
 (b) the conditions in section 705‑315 (about errors in tax cost setting amounts) are satisfied for a *subsidiary member of the group; and
 (c) you have a *net overstated amount or a *net understated amount for the subsidiary member.
 (2) The time of the event is the start of the income year in which the Commissioner becomes aware of the errors.
 (3) You work out whether you have a net overstated amount or net understated amount using this table:

Meaning of net overstated amount and net understated amount
Item                                                         In this situation:                                                                                                                                                                                                            There is this result: