Income Tax Assessment Act 1997
CHAPTER 4
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INTERNATIONAL ASPECTS OF INCOME TAX
PART 4-5
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GENERAL
Division 830
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Foreign hybrids
Subdivision 830-C
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Special rules applicable while an entity is a foreign hybrid
SECTION 830-45
Partner's revenue and net capital losses from foreign hybrid not to exceed partner's loss exposure amount
830-45(1)
This section applies to a * limited partner in a * foreign hybrid in relation to an income year if the sum of the following amounts:
(a) any amount (a foreign hybrid revenue loss amount ) allowable to the partner as a deduction under subsection 92(2) of the Income Tax Assessment Act 1936 in respect of a * partnership loss of the foreign hybrid for the income year;
(b) any * foreign hybrid net capital loss amount of the partner in respect of the foreign hybrid for the income year;
Reduction in foreign hybrid revenue loss amount or foreign hybrid net capital loss amount
830-45(2)
If this section applies, the amount mentioned in paragraph (1)(a) or (b), or each of the amounts mentioned in those paragraphs, is reduced so that in total they equal the partner's * loss exposure amount. The partner must choose how much of the reduction is applied to each of the amounts.
Effect of reducing foreign hybrid net capital loss amount
830-45(3)
If the partner's * foreign hybrid net capital loss amount in respect of the * foreign hybrid for the income year is reduced under subsection (2), the partner's * net capital gain or * net capital loss for the income year is worked out by assuming that the * capital gains and * capital losses taken into account in working out the partner's foreign hybrid net capital loss amount were instead a capital loss equal to the foreign hybrid net capital loss amount after the reduction.
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In the case of a foreign hybrid company, references in this Subdivision that relate to partnerships are to be read subject to Subdivision 830-B . For example, a reference to a partner will be a reference to a shareholder in the company who is treated by Subdivision 830-B as a partner.
This section applies to a * limited partner in a * foreign hybrid in relation to an income year if the sum of the following amounts:
(a) any amount (a foreign hybrid revenue loss amount ) allowable to the partner as a deduction under subsection 92(2) of the Income Tax Assessment Act 1936 in respect of a * partnership loss of the foreign hybrid for the income year;
(b) any * foreign hybrid net capital loss amount of the partner in respect of the foreign hybrid for the income year;
exceeds the partner's * loss exposure amount for the income year.
Reduction in foreign hybrid revenue loss amount or foreign hybrid net capital loss amount
830-45(2)
If this section applies, the amount mentioned in paragraph (1)(a) or (b), or each of the amounts mentioned in those paragraphs, is reduced so that in total they equal the partner's * loss exposure amount. The partner must choose how much of the reduction is applied to each of the amounts.
Effect of reducing foreign hybrid net capital loss amount
830-45(3)
If the partner's * foreign hybrid net capital loss amount in respect of the * foreign hybrid for the income year is reduced under subsection (2), the partner's * net capital gain or * net capital loss for the income year is worked out by assuming that the * capital gains and * capital losses taken into account in working out the partner's foreign hybrid net capital loss amount were instead a capital loss equal to the foreign hybrid net capital loss amount after the reduction.