Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 175 - Use of a company ' s tax losses or deductions to avoid income tax

Guide to Division 175

SECTION 175-1 What this Division is about

The Commissioner can reverse the effect of schemes that, in order to avoid tax, bring together in the same company:

• assessable income; and

• tax losses, current year deductions, or deductions for bad debts, that apart from the scheme would not be fully used.