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 170-20 (ARCHIVE) WHO CAN DEDUCT TRANSFERRED LOSS 170-20(1)
If an amount of a *tax loss is transferred, the *income company can deduct the amount in accordance with section 36-15 (which is about how to deduct a tax loss), but only if Subdivision 165-A (as modified by section 170-23 ) and Subdivision 175-A do not prevent it from doing so.
170-20(2)
The *loss company can no longer deduct the transferred amount and is taken not to have incurred the *tax loss to the extent of that amount.
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 170-20 (ARCHIVE) WHO CAN DEDUCT TRANSFERRED LOSS 170-20(1)
If an amount of a *tax loss is transferred, the *income company can deduct the amount in accordance with section 36-15 (which is about how to deduct a tax loss), but only if Subdivision 165-A (as modified by section 170-23 ) and Subdivision 175-A do not prevent it from doing so.
Note:
Subdivision 165-A is about the conditions that a company needs to satisfy before it can deduct a tax loss from an earlier income year.
Subdivision 175-A is about the Commissioner preventing a company from getting certain tax benefits through its unused tax losses.
170-20(2)
The *loss company can no longer deduct the transferred amount and is taken not to have incurred the *tax loss to the extent of that amount.
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