FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)

PART 3 - INCOME TAX RELIEF FOR TRANSFERS  

Division 8 - Tax losses  

Subdivision A - Tax losses and the Income Tax Assessment Act 1936  

SECTION 26 (ARCHIVE)   DEDUCTION FOR TAX LOSS - MODIFICATION OF ``SUBSTANTIAL CONTINUITY OF OWNERSHIP'' TEST ETC.  

26(1)   [Application]  

If:

(a) this Act applies to one or more transfers by the transferring corporation to the receiving corporation; and

(b) the transferring corporation is taken (otherwise than because of section 80G of the Income Tax Assessment Act 1936 ) to have incurred a loss in a year of income (the ``loss year'' ) for the purposes of section 79E , 79F , 80 , 80AAA or 80AA of that Act; and

(c) the loss year is the year of income in which this section commenced or an earlier year of income; and

(d) section 80A or 80DA , or both, of that Act prevent a deduction from being allowable under that Act to the transferring corporation for a year of income (the ``deduction year'' ) in respect of that loss; and

(e) the transferring corporation did not, at any time in the deduction year, derive income from:

(i) a business of a kind that it did not carry on; or

(ii) a transaction of a kind that it had not entered into in the course of its business operations;

before the transfer, or the earliest of the transfers, occurred;

sections 80A and 80DA of the Income Tax Assessment Act 1936 do not prevent a deduction from being allowable to the transferring corporation in respect of that loss.

26(2)   [No operation from 1997/98 year onward]  

This section does not apply to assessments for the 1997-98 year of income and later years of income.