• C3 – Losses

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    Section

    Title

    Currency date

    C3

    Losses

     

    C3-0

    About this section

    15 April 2010

    C3-1

    Treatment of losses

    15 April 2010

    C3-2

    High-level worked example:

     

    C3-2-110

    Consolidation loss provisions

    2 December 2002

    C3-3

    Worked examples (loss transfer)

     

     

    Establishing the unutilised loss:

     

    C3-3-105

    Utilising loss in non-membership period - non-membership period is taken to include joining time

    28 May 2003

    C3-3-110

    Establishing unutilised loss at transfer time - single joining time and prior year loss case

    2 December 2002

    C3-3-120

    Establishing unutilised loss at transfer time - multiple joining times and prior year and current year loss case

    28 May 2003

     

    Transfer testing:

     

    C3-3-210

    Transfer testing where no ownership or control failure - single joining time and joining year loss case

    28 May 2003

    C3-3-220

    Transfer testing where ownership or control failed - single joining time and pre-1 July 1999 year loss case

    5 April 2004

    C3-3-230

    Transfer testing with modified same business test - where ownership or control failed before trial year but after loss year

    5 April 2004

    C3-3-240

    Transfer testing with modified same business test - where ownership or control failure in trial year but after loss year

    12 May 2004

    C3-3-245

    Transfer testing with modified same business test - where head company transfers losses to itself

    12 May 2004

    C3-3-246

    Transfer testing with modified same business test - acquisition of another consolidated group

    27 January 2005

    C3-3-250

    Additional test for second or subsequent transfer of a loss previously transferred because the SBT was passed

    5 April 2004

    C3-3-260

    Transfer testing where Subdivision 165-CC applies to a net capital loss that is unutilised at the joining time

    28 May 2003

    C3-3-270

    Transfer testing where control or ownership failure and a change in business within the non-membership period

    3 November 2004

    C3-4

    Worked examples (loss utilisation)

     

     

    Calculating the available fraction:

     

    C3-4-110

    Modified market value of a single joining entity

    2 December 2002

    C3-4-120

    Calculating an available fraction - losses transferred for the first time where there has been a pre-joining injection of capital

    26 October 2005

     

    Applying the value donor concession:

     

    C3-4-210

    Adding to modified market value to reflect loss transferability

    2 December 2002

    C3-4-220

    Including value donor's losses in real loss-maker's bundle

    2 December 2002

    C3-4-230

    Adding to modified market value to reflect loss transferability - loss made for an income year ending just before the initial transfer time

    28 May 2003

    C3-4-240

    Adding to modified market value to reflect loss transferability - bundle includes foreign loss

    10 December 2004

    C3-4-250

    Modified market value is nil where company has negative net assets

    3 December 2003

    C3-4-255

    Donating a value donor's loss where modified market value is added to the value donor (in the capacity of a real loss-maker)

    16 December 2005

    C3-4-256

    Losses transferred from members that are in liquidation can be used as basis for value and loss donation

    12 September 2006

    C3-4-260

    Group waiver rule - disregarding reductions to modified market value caused by intragroup injections of capital

    12 September 2006

    C3-4-270

    Single waiver rule - disregarding a reduction to modified market value caused by an injection of capital from a value donor

    27 January 2005

     

    Adjusting the available fraction:

     

    C3-4-310

    Adjusting available fraction - previously transferred losses are transferred again

    2 December 2002

    C3-4-320

    Adjusting available fraction - transferred losses and group losses are transferred at the same time

    2 December 2002

    C3-4-330

    Adjusting available fraction - another loss entity joins the group

    2 December 2002

    C3-4-340

    Adjusting the available fraction - post-consolidation events that increase market value of group

    6 April 2006

    C3-4-341

    Adjusting available fraction - post-consolidation injection of capital into subsidiary member

    6 April 2006

    C3-4-342

    Adjusting available fraction - post-consolidation injection of capital where head company issues shares in scrip for scrip merger

    6 April 2006

    C3-4-343

    Adjusting available fraction - multiple adjustments under a scrip for scrip acquisition

    15 April 2010

    C3-4-350

    Adjusting available fraction - sum of available fractions is more than one

    2 December 2002

     

    Amount that can be utilised:

     

    C3-4-410

    Amount of transferred losses that can be utilised

    2 December 2002

    C3-4-415

    Amount of transferred losses that can be utilised - franking offsets

    23 April 2004

    C3-4-416

    Amount of transferred losses that can be utilised - application of paragraph 36-17(5)(a)

    10 December 2004

    C3-4-417

    Amount of transferred losses that can be utilised - application of paragraph 36-17(5)(b)

    10 December 2004

    C3-4-420

    Amount of transferred losses that can be utilised - exempt income

    2 December 2002

    C3-4-430

    Amount of losses that can be utilised - transferred tax losses utilised before group tax losses

    10 December 2004

    C3-4-440

    Determining if a transferred loss can be utilised - COT transfer case

    3 December 2003

    C3-4-450

    Cessation of a consolidated group - application of the SBT to the former head company

    26 June 2007

     

    Utilisation - special circumstances:

     

    C3-4-510

    Transferred loss utilisation using value donor concession with transferred foreign losses

    26 October 2005

    C3-4-520

    Concessional method for utilising transferred losses

    2 December 2002

    C3-4-525

    Concessional method for utilising transferred losses - consolidation part-way through income year

    26 October 2005

    C3-4-530

    Utilisation of transferred losses using both concessional and available fraction methods

    2 December 2002

    C3-4-540

    Amount of CGT event L1 capital loss that can be utilised

    2 December 2002

    C3-4-550

    Transitional foreign loss makers

    26 October 2005

    C3-4-560

    Amount of transferred losses that can be utilised - foreign loss component of a tax loss

    30 June 2009

    C3-4-570

    Transfer and utilisation of a tax loss with a foreign loss component where the loss maker joins part-way through the head company's income year

    15 April 2010

     

    Apportioning use of transferred losses:

     

    C3-4-610

    Apportioning the use of transferred losses

    2 December 2002

    C3-4-620

    Apportioning the use of the head company's own losses

    28 May 2003

    C3-4-630

    Apportioning the use of transferred losses in formation year

    10 December 2004

     

    Transfer of losses to Australian branch of a foreign bank:

     

    C3-4-710

    Transfer of tax losses from head company of consolidated group to Australian branch of a foreign bank

    28 May 2003

    C3-5

    Transfer of tax losses under Subdivision 170 A - consolidation part-way through the head company's income year

    2 October 2003

     

    Worked examples:

     

    C3-5-110

    Transfer of subsidiary member tax losses under Subdivision 170 A - consolidation part-way through the head company's income year

    2 October 2003

    C3-5-120

    Transfer of a group tax loss under Subdivision 170-A - consolidation part-way through the head company's income year

    2 October 2003

    C3-5-130

    Late loss transfers under Subdivision 170-A - consolidation and the Commissioner's discretion

    27 January 2005

    C3-6

    Determining the reduction amount - subsection 707-325(3)

    18 May 2005

     

    Worked examples:

     

    C3-6-110 

    Determining the reduction amount - multiple events, determining the initial increase in market value

    18 May 2005

    C3-6-120

    Determining the reduction amount - diminution in value up to the joining time

    18 May 2005

    C3-6-130

    Determining the reduction amount - injection of capital that does not result in increased modified market value

    18 May 2005

    C3-6-140

    Determining the reduction amount - compounding of value up to the joining time

    18 May 2005

    C3-6-150

    Determining the reduction amount - injection of capital subsequently injected into a subsidiary

    18 May 2005

    C3-6-160

    Determining the reduction amount - multiple events, market value reduced under some events

    18 May 2005

      Last modified: 14 Jun 2014QC 17069