Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 170 - Treatment of certain company groups for income tax purposes  

Subdivision 170-D - Transactions by a company that is a member of a linked group  

Operative provisions

SECTION 170-270   Immediate consequences for originating company  

170-270(1)  
If, apart from this Subdivision:


(a) the originating company would have made a *capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision) as a result of the deferral event; or


(b) the originating company would have become entitled to a deduction in respect of the deferral event; or


(c) where the originating company is a partner in a partnership - the partnership would have become entitled to a deduction in respect of the deferral event;

the capital loss, the deduction or the partner ' s share of the deduction, as the case may be, is disregarded.

170-270(2)  


To avoid doubt, the amount of the *capital loss, deduction, or partnership deduction, referred to in this section is:


(a) the amount remaining after applying Division 723 or section 727-615 ; or


(b) nil, if none of the amount remains after applying that section or Division.

Note:

Division 723 and section 727-615 reduce a loss realised for income tax purposes by a realisation event happening to a non-depreciating asset (in the case of Division 723 ) or an affected interest in a losing entity under an indirect value shift (in the case of section 727-615 ).


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