Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-5
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CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS
Division 175
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Use of a company's tax losses or deductions to avoid income tax
Subdivision 175-A
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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 the company 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 .
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 the company 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 .
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