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  

Conditions for transfer  

SECTION 170-135 (ARCHIVE)   THE LOSS COMPANY  

170-135(1)    
It must be the case that the loss company was not required to calculate the *net capital loss:

(a) under section 165-114 (because of a change in ownership or control); or

(b) under section 175-75 (because of an injected capital gain or loss).

170-135(2)    
Also, it must be the case that neither Subdivision 165-CA nor Subdivision 175-CA would have prevented the loss company from applying the *net capital loss in working out its *net capital gain for the application year if it had made enough capital gains in that year.

Note 1:

Subdivision 165-CA deals with the consequences of changing ownership or control of a company. Subdivision 175-CA deals with using a company's net capital losses to avoid income tax.

Note 2:

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