FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)

SCHEDULE 2  

NET CAPITAL LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997

Part 1 - Replacement of sections 170-110 to 170-145  

Effect of transferring a net capital loss  

SECTION 170-110 (ARCHIVE)   WHEN A CORPORATION CAN TRANSFER A NET CAPITAL LOSS  

170-110(1)    
A transferring corporation within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 (the loss company ) can transfer an amount of its *net capital loss for an income year of the loss company (the capital loss year ) to a receiving corporation within the meaning of that Act (the gain company ) if the conditions in this Subdivision are met.

170-110(2)    
The amount transferred can be the whole or part of the *net capital loss.

Note:

A PDF cannot transfer a net capital loss, except one for a period before it became a PDF: see section 195-30 of the Income Tax Assessment Act 1997 .

170-110(3)    
However, the *loss company cannot transfer so much of the *net capital loss as the loss company has applied, or can apply, in working out its *net capital gain or *net capital loss for an income year before the one in which the amount is transferred.