FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)
SCHEDULE 1
Subdivision 170-A
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Transfer of tax losses from a transferring corporation to a receiving corporation
Effect of transferring a tax loss
SECTION 170-15 (ARCHIVE) INCOME COMPANY IS TAKEN TO HAVE INCURRED TRANSFERRED LOSS 170-15(1)
If an amount of a *tax loss is transferred, the *amount is taken to be a tax loss incurred by the *income company in the *loss year.
170-15(2)
However, if the *loss year is the same as the income year of the *income company for which the amount is transferred (the transfer year ), the *income company is taken to have incurred the *tax loss in the income year before the loss year.
TAX LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1 of the Income Tax Assessment Act 1997 .
SECTION 170-15 (ARCHIVE) INCOME COMPANY IS TAKEN TO HAVE INCURRED TRANSFERRED LOSS 170-15(1)
If an amount of a *tax loss is transferred, the *amount is taken to be a tax loss incurred by the *income company in the *loss year.
170-15(2)
However, if the *loss year is the same as the income year of the *income company for which the amount is transferred (the transfer year ), the *income company is taken to have incurred the *tax loss in the income year before the loss year.
Note:
This rule is needed because Division 36 allows a tax loss to be deducted only if it was incurred in an earlier income year.
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