Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-D - Treatment of company's deferred losses under Subdivision 170-D on joining a consolidated group  

Deferred loss on 165-CC tagged asset

SECTION 715-365   How loss denial balance is applied when 170-D deferred loss revives  

715-365(1)  
If a * 170-D deferred loss on a * CGT asset is in a * loss denial pool of an entity when the loss * revives, the * capital loss or deduction that section 170-275 would, apart from this section, treat the entity as having made or become entitled to at that time in respect of the asset is reduced by the lesser of:


(a) the amount of the capital loss or deduction; and


(b) the pool's * loss denial balance (as reduced by any previous reductions under section 715-130 , subsection 715-160(1) or this subsection);

and the loss denial balance is reduced by the same amount.

715-365(2)  
Subsection (1) applies to * 170-D deferred losses in the order in which they * revive. If 2 or more revive at the same time, it applies to them in whichever order the entity determines.

715-365(3)  
Subsection (1) reduces a * loss denial balance before section 715-130 does, unless the * realisation event happens after the leaving time referred to in that section.


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