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-A - Transfer of tax losses within certain wholly-owned groups of companies  

Conditions for transfer

SECTION 170-32   Tax loss incurred by the loss company because of a transfer under Subdivision 707-A  


When the conditions in this section apply

170-32(1)    
The conditions in this section apply instead of the conditions in subsections 170-30(1) and (2) if:


(a) the *income company is an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936 ) of a *foreign bank; and


(b) the *loss company incurred the *tax loss because of one or more transfers of the tax loss under Subdivision 707-A .

Conditions

170-32(2)    
Each transferor ( prior transferor ) of the *tax loss under Subdivision 707-A must have been a company.

170-32(3)    
It must have been possible to meet the conditions in subsections 170-30(1) and (2) in relation to the *loss company and the *income company assuming:


(a) the *loss year were so much of the income year in which the *tax loss was transferred to the loss company under Subdivision 707-A as occurred after the transfer; and


(b) so much (if any) of the *deduction year as occurred before the transfer were disregarded.

170-32(4)    


The *income company and each prior transferor must both be in existence during at least part of each of these periods:


(a) the period consisting of:


(i) if the prior transferor incurred the *tax loss apart from Subdivision 707-A - the *loss year; or

(ii) if the prior transferor incurred the tax loss because of a transfer under Subdivision 707-A (other than a transfer from the prior transferor to itself) - so much of the income year in which the transfer occurred as was after the transfer (but before any later transfer of the loss from the prior transferor under that Subdivision);


(b) so much of the income year during which the tax loss was transferred under Subdivision 707-A from the prior transferor to another company as occurs before the transfer (but after the start of the period described in paragraph (a));


(c) any intervening income year.


170-32(5)    


The *income company must be a member of the same *wholly-owned group as each prior transferor during the whole or part of the periods described in subsection (4) for the prior transferor when both were in existence.

View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.