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  • 3 Losses carried forward for which the same business test must be satisfied before they can be deducted in later years - excludes film losses

    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

    Note: Item 3 asks for information about the tax losses and net capital losses for which the entity must satisfy the same business test in subsequent years for the entity to be able to utilise those losses.

    Company and listed widely held trust

    For more information on the same business test see the information on part B item 2.

    Tax losses

    Show at I the total amount of tax losses, including a foreign loss component of a tax loss, carried forward to later income years for which the same business test must be satisfied for the entity to deduct those tax losses in later income years.

    Net capital losses

    Show at J the total amount of net capital losses carried forward to later income years for which the same business test must be satisfied for the company to apply those net capital losses in later income years.

    Example 6

    As at the end of the 2008–09 income year, the company had the following losses available:

    Year

    Tax loss

    Net capital loss

    2002–03

    $1,500

    -

    2003–04

    $3,000

    -

    2004–05

    -

    $700

    2005–06

    $1,900

    $900

    2006–07

    -

    -

    2007–08

    $1,000

    $1,500

    2008–09

    -

    -

    TOTALS

    $7,400

    $3,100

    A change in the underlying beneficial interests in the company took place during the 2006–07 income year. As a result, the company must satisfy the same business test for the tax losses of the following income years:

    • 2002–03 ($1,500)
    • 2003–04 ($3,000)
    • 2005–06 ($1,900).

    It must also satisfy the same business test in respect of the net capital losses for the following income years:

    • 2004–05 ($700)
    • 2005–06 ($900).

    The 2007–08 tax loss ($1,000) and the net capital loss ($1,500) are not affected.

    The company completes part B item 3 as follows:

    Part B item 3
Label I Tax losses: $6,400
Label J Net capital losses: $1,600

    End of example
    Last modified: 27 Nov 2009QC 21731