CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-5
-
CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS
Division 160
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Corporate loss carry back tax offset for 2020-21, 2021-22 or 2022-23 for businesses with turnover under $5 billion
History
Div 160 heading amended by No 8 of 2022, s 3 and Sch 6 item 4, substituting
"
, 2021-22 or 2022-23
"
for
"
or 2021-22
"
, effective 1 April 2022.
Div 160 inserted by No 92 of 2020, s 3 and Sch 2 item 2, effective 1 January 2021.
Former Div 160 repealed by No 96 of 2014, s 3 and Sch 2 item 1, effective 30 September 2014 and applicable to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences and for later income years. No 96 of 2014, s 3 and Sch 2 item 43 contains the following transitional and saving provision:
43 Making and amending assessments, and doing other things, in relation to past matters
43(1)
Even though a part of an Act is repealed or amended by this Schedule, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the
Legislative Instruments Act 2003
):
(a)
making or amending an assessment (including under a provision that is itself repealed or amended);
(b)
exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.
43(2)
This item does not limit the operation of the
Acts Interpretation Act 1901.
Former Div 160 inserted by No 88 of 2013, s 3 and Sch 5 item 2, effective 29 June 2013.
Subdivision 160-A
-
Entitlement to and amount of loss carry back tax offset
History
Subdiv 160-A inserted by No 92 of 2020, s 3 and Sch 2 item 2, effective 1 January 2021.
Former Subdiv 160-A repealed by No 96 of 2014, s 3 and Sch 2 item 1, effective 30 September 2014 and applicable to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences and for later income years. For transitional and saving provision see note under Div
160
heading.
SECTION 160-5
160-5
Entitlement to loss carry back tax offset
An entity is entitled to a *tax offset (the
loss carry back tax offset
) for the *current year if the following conditions are satisfied:
(a)
the current year is:
(i)
the 2020-21 income year; or
(ii)
the 2021-22 income year; or
(iii)
the 2022-23 income year;
(b)
the entity is a *corporate tax entity throughout the current year;
Note:
See also section
160-25
.
(c)
any or all of the following income years were *loss years:
(i)
the 2019-20 income year;
(ii)
the 2020-21 income year;
(iii)
if the current year is the 2021-22 income year
-
the 2021-22 income year;
(iv)
if the current year is the 2022-23 income year
-
the 2022-23 income year or the 2021-22 income year;
(d)
the entity had an *income tax liability for any or all of the following income years:
(i)
the 2018-19 income year;
(ii)
the 2019-20 income year;
(iii)
if the current year is the 2021-22 income year and the 2021-22 income year was a loss year
-
the 2020-21 income year;
(iv)
if the current year is the 2022-23 income year and the 2022-23 income year was a loss year
-
the 2021-22 income year or the 2020-21 income year;
(v)
if the current year is the 2022-23 income year and the 2021-22 income year was a loss year
-
the 2020-21 income year;
(e)
any of the following requirements are satisfied for the current year and each of the 5 income years before the current year:
(i)
the entity has lodged its *income tax return for the year;
(ii)
the entity was not required to lodge an income tax return for the year;
(iii)
the Commissioner has made an assessment of the entity
'
s income tax for the year;
(f)
the entity makes a *loss carry back choice for the current year in accordance with Subdivision
160-B
.
Note 1:
The entity can be entitled to only one loss carry back tax offset for 2020-21. However, that offset has 2 components: one relating to 2018-19 and one relating to 2019-20: see section
160-10
.
Note 2:
The entity can be entitled to only one loss carry back tax offset for 2021-22. However, that offset has 3 components: one relating to 2018-19, one relating to 2019-20 and one relating to 2020-21: see section
160-10
.
Note 2A:
The entity can be entitled to only one loss carry back tax offset for 2022-23. However, that offset has 4 components: one relating to 2018-19, one relating to 2019-20, one relating to 2020-21 and one relating to 2021-22: see section
160-10
.
Note 3:
The loss carry back tax offset is a refundable tax offset: see section
67-23
.
History
S 160-5 amended by No 8 of 2022, s 3 and Sch 6 items 7
-
10, by inserting para (a)(iii), (c)(iv), (d)(iv) and (v) and note 2A. effective 1 April 2022.
S 160-5 inserted by No 92 of 2020, s 3 and Sch 2 item 2, effective 1 January 2021.
Former s 160-5 repealed by No 96 of 2014, s 3 and Sch 2 item 1, effective 30 September 2014 and applicable to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences and for later income years. For transitional and saving provision see note under Div
160
heading. S 160-5 formerly read:
SECTION 160-5 Object of this Division
160-5
The object of this Division is to reduce the tax disincentive for corporate tax entities to take sensible investment risks. The Division does this by allowing such entities to offset their tax losses against their income tax liabilities for the 2 previous income years through a refundable tax offset.
Former s 160-5 inserted by No 88 of 2013, s 3 and Sch 5 item 2, effective 29 June 2013.
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