Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 715 - Interactions between this Part and other areas of the income tax law  

Subdivision 715-A - Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation  

General provisions about loss denial pools

SECTION 715-160   How loss denial balance is applied to losses realised on assets in pool  

715-160(1)  
If, apart from this section, a loss would be * realised for income tax purposes by a * realisation event that happens to a * CGT asset when it is in a * loss denial pool of an entity, the loss is reduced by the lesser of:


(a) the amount of the loss; and


(b) the pool's * loss denial balance (as reduced by any previous reductions under section 715-130 or this subsection);

and the loss denial balance is reduced by the same amount.

715-160(2)  
Subsection (1) applies to * realisation events in the order in which they happen. If 2 or more happen at the same time, it applies to them in whichever order the entity determines.

715-160(3)  
Subsection (1) reduces a * loss denial balance after section 715-130 does, unless the * realisation event happens before the leaving time referred to in that section.


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