• Deductions for previous year losses

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

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    You may claim a notional allowable deduction for a CFC's previous years' losses. Do this separately for each class of income. In determining the loss for a particular class of notional assessable income, only the notional allowable deductions that relate to that particular class and were derived in that period are taken into account. If the notional allowable deductions are more than the notional assessable income, the difference is set off against the sometimes exempt income gain of that class for the period. The amount that remains is the CFC's loss for that class for the period.

    Last modified: 05 Dec 2006QC 17522