A head company of a consolidated group or MEC (multiple entry consolidated) group that satisfies any one or more of the following tests must complete the Consolidated groups losses schedule 2003, and lodge it with the Company tax return 2003.
- It has a total of tax losses and net capital losses carried forward to the 2003-04 income year greater than $100,000.
- It has a total of tax losses and net capital losses transferred from joining entities greater than $100,000.
- It has a total of tax losses and net capital losses utilised greater than $100,000.
- It has a total of foreign source losses carried forward to the 2003-04 income year greater than $100,000.
- It has a total of foreign source losses transferred from joining entities greater than $100,000.
- It has a total of foreign source losses utilised greater than $100,000.
- It has a deduction for earlier year controlled foreign company (CFC) losses greater than $100,000.
- It has a total CFC losses carried forward to later income years greater than $100,000.
- It is a life insurance company and has a total of virtual pooled superannuation trust (PST) tax losses and virtual PST net capital losses carried forward to the 2003-04 income year greater than $100,000.
A head company may need to complete a Consolidated groups losses schedule 2003 (the schedule) in respect of certain aspects of its net capital losses. While some of the information requested in the schedule is also requested in the Capital gains tax (CGT) schedule 2003 (CGT schedule), a head company that completes a consolidated groups losses schedule may also need to complete a CGT schedule.
If the head company completes a Consolidated groups losses schedule 2003 in respect of any aspect of its losses, all relevant parts of the schedule must be completed. For example, if a head company completes the schedule as a result of having tax losses and capital losses carried forward to later income years greater than $100,000, details of foreign source losses are required even if the total of these losses is not greater than $100,000.
These instructions are based on provisions relating to consolidated groups. Some of those provisions are modified in Division 719 of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to MEC groups.
Note: In these instructions:
- A reference to an 'unutilised' tax loss includes a reference to a tax loss for which a deduction has not yet been claimed or that has not been reduced by net exempt income. Conversely, a 'utilised' tax loss includes a reference to a tax loss for which a deduction has been claimed or that has been reduced by net exempt income.
- A reference to an 'unutilised' net capital loss is a reference to a net capital loss which has not been applied against capital gains. Conversely, a 'utilised' net capital loss is one which has been applied against capital gains.
- A reference to an 'unutilised' foreign source loss is a reference to a foreign source loss which has not been taken into account in reducing assessable foreign income. Conversely, a 'utilised' foreign source loss is one which has been taken into account in reducing assessable foreign income of that class.