Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 7 - Calculation of attributable income of CFC  

Subdivision D - Modifications relating to losses  

SECTION 426  

426   CREATION OF LOSS  

For the purposes of this Subdivision, if:

(a) the amount of the eligible CFC ' s notional allowable deductions (other than under section 431 ) for a statutory accounting period (being the eligible period or an earlier period) are applied as follows:

(i) they are applied first against any notional assessable income of the eligible CFC class for the period;

(ii) any excess is then applied against any (sometimes-exempt income) gain for the period; and

(b) there is any amount remaining;

then the amount remaining is a loss of the eligible CFC for the period.