Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 195 - Special types of company  

Subdivision 195-A - Pooled development funds (PDFs)  

Working out a PDF's taxable income and tax loss

SECTION 195-15   Tax loss for year in which company becomes a PDF  

195-15(1)  
This section applies if a company becomes a *PDF during an income year and is still a PDF at the end of it.

195-15(2)  
Divide the income year into periods as follows:


(a) the non-PDF period is the period beginning at the start of the income year and ending when the company becomes a *PDF;


(b) the PDF period is the rest of the income year.

195-15(3)  
For each period, work out whether the company has a taxable income or a *tax loss (or both), treating each period as if it were an income year.

195-15(4)  
If the company has:


(a) a taxable income for the non-PDF period; and


(b) a *tax loss for the PDF period;

that tax loss is a tax loss of the company for the income year.

Note:

The company can only deduct the tax loss while it is a PDF: see section 195-5 .

195-15(5)  
If the company has a *tax loss for the non-PDF period:


(a) section 195-5 does not prevent the company from deducting its tax loss for the income year in a later income year; and


(b) section 195-10 does not prevent the company from transferring an amount of the tax loss under Subdivision 170-A (which is about the transfer of tax losses within certain wholly-owned groups of companies); and


(c) section 195-37 does not prevent the company from *carrying back its tax loss for the purpose of working out the amount of the company ' s *loss carry back tax offset for the 2020-21 or 2021-22 income year;

to the extent that the tax loss does not exceed the tax loss for the non-PDF period.

195-15(6)  
These rules apply in addition to the other rules about how *tax losses are applied or transferred.

The other rules start in Division 36 (which is about tax losses of earlier income years).


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