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

SCHEDULE 1  

TAX LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997

Subdivision 170-A - Transfer of tax losses from a transferring corporation to a receiving corporation  

Effect of transferring a tax loss

SECTION 170-23 (ARCHIVE)   WHEN INCOME COMPANY MUST MAINTAIN SAME OWNERS AND CONTROL  

170-23(1)    
Ordinarily, Subdivision 165-A prevents a company from deducting for an income year (the deduction year ) a tax loss if there has been a change in the ownership or control of the company between the loss year and the deduction year.

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.

170-23(2)    
However, subsection (3) modifies that Subdivision so that the *income company is prevented from deducting for the deduction year a transferred amount of a *tax loss only if there has been a change in ownership or control in the income company between the transfer year and the deduction year.

170-23(3)    
That Subdivision applies to the transferred amount as if all references to ``*loss year'' in that Subdivision were references to ``*transfer year''.