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  • Part B Cancellation of transfer of losses

    Note:

    All head companies that are required to complete another part of the Consolidated groups losses schedule 2003 are also required to complete the relevant details requested in this part.

    1 Has the head company cancelled the transfer of a loss?

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    A head company can make an irrevocable choice to cancel the transfer of a loss of a joining entity. If the choice is made, the transfer is taken never to have occurred and the loss can never be used by any entity for all income years ending after the joining time. Refer to sections 707-145 and 707-150 of ITAA 1997.

    If the answer is yes print Y at label A, and complete item 2.

    If the answer is no print N at label A, and do not complete item 2. Go to part C.

    2 Details of cancellation of transfer of losses

    Show at labels B, D, F and H the TFNs of those joining entities where there has been a cancellation of the transfer of one or more losses during the income year. If the cancellation of the transfer of a loss has occurred in respect of four or fewer than four joining entities, complete the number of labels required. If the cancellation of the transfer of a loss has occurred in respect of more than four joining entities, show the TFNs for those joining entities for which there was the cancellation of the transfer of the four largest total amount of losses.

    Show at labels C, E, G and I, as required, the total amount of the cancellation of the transfer of one or more losses for joining entities whose TFNs are recorded at labels B, D, F and H respectively.

    Example 15

    XXX consolidated group comes into existence on 1 July 2002. For the 2002-03 income year, the head company cancelled the transfer of one or more losses of six joining entities as follows:

    TFN

    Amount of cancellation of transfer of loss ($)

    Total

    Tax

    Film

    Net capital

    Foreign

    111 111 111

    100

    180

       

    280

    222 222 222

       

    230

     

    230

    333 333 333

         

    250

    250

    444 444 444

    80

     

    220

     

    300

    555 555 555

       

    110

     

    110

    666 666 666

    320

         

    320

    The head company completes part B, item 2 on the schedule as follows:

     

    Joining entity TFN

       

    B

    111 111 111

    C

    280

    D

    222 222 222

    E

    250

    F

    444 444 444

    G

    300

    H

    666 666 666

    I

    320

    TFNs and corresponding amounts have been recorded for those joining entities for which there was the cancellation of the transfer of the four largest total amount of losses.

    Last modified: 30 Jul 2003QC 27493