INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

Division 719 - MEC groups  

Subdivision 719-F - Losses  

Bundles of losses and their available fractions

SECTION 719-325   Cancellation of all losses in a bundle  

719-325(1)  
The ongoing head company:


(a) may choose to cancel all the losses in the * bundle of prior group losses; and


(b) may choose to cancel all the losses in a * bundle of losses to which section 719-310 applies.

719-325(2)  
If the ongoing head company chooses to cancel all the losses in a * bundle, subsections (3), (4), (5), (6) and (7) operate.

719-325(3)  
The ongoing head company cannot * utilise for the income year in which the application event happened more of the losses than it would have been able to utilise under Subdivision 707-C assuming:


(a) if the losses are prior group losses:


(i) the losses were in a * bundle for the income year; and

(ii) the * available fraction for the bundle were 1 for the period from the start of the income year until the event happened; and


(b) in any case - the available fraction for the bundle including the losses were 0 from the time of the event until the end of the income year.

Note:

Section 707-335 is relevant to working out how much of the losses could be utilised, because the value of the available fraction for the bundle changes during the period described in that section.

719-325(4)  
The ongoing head company cannot:


(a) transfer the losses to another company under Division 170 for an income year ending after the application event; or


(b) transfer the losses to another company under Subdivision 707-A after the application event.

This subsection has effect despite subsection (3).

719-325(5)  
Disregard the existence of the * bundle at and after the time of the application event for the purposes of working out the * available fraction for another * bundle of losses.

719-325(6)  
The losses cannot be * utilised by any entity for an income year starting after the application event.

719-325(7)  
The choice cannot be revoked.


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