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

SCHEDULE 2  

NET CAPITAL LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997

Part 1 - Replacement of sections 170-110 to 170-145  

Effect of transferring a net capital loss  

SECTION 170-115 (ARCHIVE)   WHO CAN APPLY TRANSFERRED LOSS  

170-115(1)    
If an amount of a *net capital loss is transferred, the gain company can apply the amount in working out its *net capital gain for the income year of the gain company for which the amount is transferred or for a later income year. The income year for which the gain company applies the amount is called the application year .

Note:

A company's net capital gain or net capital loss for an income year is usually worked out under section 102-5 .

170-115(2)    
The loss company can no longer apply the transferred amount and is taken not to have made the *net capital loss to the extent of that amount.