FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)
SCHEDULE 1
Subdivision 170-A
-
Transfer of tax losses from a transferring corporation to a receiving corporation
SECTION 170-5 (ARCHIVE)
BASIC PRINCIPLES FOR TRANSFERRING TAX LOSSES
170-5(1)
A transferring corporation (within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 ) can transfer a tax loss to a receiving corporation (within the meaning of that Act) so that the receiving corporation can deduct it.
170-5(2)
The corporations must be related in such a way that that Act would apply to a transfer of assets from the transferring corporation to the receiving corporation.
170-5(3)
The receiving corporation need not have enough assessable income to offset the transferred tax loss.
170-5(4)
The tax loss is transferred by an agreement between the 2 corporations.
170-5(5)
Special rules extend the scope of this Subdivision to let the head company of a consolidated group or MEC group transfer in some cases a tax loss the company incurred because of Subdivision 707-A . The rules do this by modifying the basis on which other provisions of this Subdivision operate.
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 .
A transferring corporation (within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 ) can transfer a tax loss to a receiving corporation (within the meaning of that Act) so that the receiving corporation can deduct it.
170-5(2)
The corporations must be related in such a way that that Act would apply to a transfer of assets from the transferring corporation to the receiving corporation.
170-5(3)
The receiving corporation need not have enough assessable income to offset the transferred tax loss.
170-5(4)
The tax loss is transferred by an agreement between the 2 corporations.
170-5(5)
Special rules extend the scope of this Subdivision to let the head company of a consolidated group or MEC group transfer in some cases a tax loss the company incurred because of Subdivision 707-A . The rules do this by modifying the basis on which other provisions of this Subdivision operate.
View history note
Hide history noteThis information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.