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  

Special rules for transfer from head company of consolidated group or MEC group

SECTION 170-75 (ARCHIVE)   TRANSFER OF A TAX LOSS INCURRED BY THE HEAD COMPANY BECAUSE OF SUBDIVISION 707-A  

170-75(1)    
The other sections of this Subdivision operate in relation to the actual or proposed transfer of a *tax loss on the basis described in this section if:

(a) the *head company of a *consolidated group or *MEC group incurred the tax loss because of Subdivision 707-A ; and

(b) the company (the real loss-maker ) that incurred the tax loss apart from Subdivision 707-A is a *member of the group at the end of the income year for which it is proposed to transfer the loss under this Subdivision.

170-75(2)    
The other sections of this Subdivision, except section 170-28 , operate as if:

(a) the *head company were a transferring corporation within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 ; and

(b) the head company had incurred the *tax loss for the income year for which the real loss-maker incurred the tax loss (apart from Subdivision 707-A ).

Note:

This has the effect that (because of subsection 170-10(1) ) those sections operate as if the head company were the loss company and the loss year were the income year for which the real loss-maker incurred the loss.

170-75(3)    
Section 170-28 operates as if:

(a) the real loss-maker were the *loss company; and

(b) section 701-1 (the single entity rule) could not affect whether the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 would have applied to the transfer described in section 170-28 .