Income Tax Assessment Act 1997
The *loss company:
(a) must be an Australian resident and not a *prescribed dual resident; and
(b) must not be a *dual resident investment company in either the *loss year or the *deduction year.
If the *loss year and the *deduction year are the same, it must be the case that the *loss company was not required to calculate the *tax loss:
(a) under section 165-70 (because of a change in ownership or control); or
(b) under section 175-35 (because of injected income or deductions). 170-35(3)
Also, it must be the case that neither Subdivision 165-A nor Subdivision 175-A would have prevented the *loss company from deducting the *tax loss in the *deduction year if it had had enough assessable income (including *assessable film income) to offset the tax loss.
Subdivision 165-A deals with the deductibility of a company's tax loss for an earlier income year if there has been a change in the ownership or control of the company in the loss year or the income year. Subdivision 175-A is about the Commissioner preventing a company from getting certain tax benefits through its unused tax losses.