INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 175 - Use of a company's tax losses or deductions to avoid income tax  

Subdivision 175-A - Tax benefits from unused tax losses  

SECTION 175-5   When Commissioner can disallow deduction for tax loss  

175-5(1)  
This Subdivision sets out cases where the Commissioner may disallow some or all of a *tax loss (or of part of a tax loss) (the excluded loss ) as a deduction in calculating a company ' s taxable income of an income year after the *loss year.

175-5(2)  
However, the Commissioner cannot disallow the *excluded loss if the company:

(a) fails to meet a condition in section 165-12 (which is about maintaining the same owners) in respect of the *loss year or the income year; but

(b) meets the condition in section 165-13 in respect of the income year by satisfying the *business continuity test under section 165-210 .