INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 170 - Treatment of certain company groups for income tax purposes  

Subdivision 170-A - Transfer of tax losses within certain wholly-owned groups of companies  

Effect of transferring a tax loss

SECTION 170-15   Income company is taken to have incurred transferred loss  

170-15(1)  


If an amount of a *tax loss is transferred, the amount is taken to be a tax loss incurred by the *income company in the *loss year.

170-15(2)  


However, if the *loss year is the same as the income year of the transfer, the *income company is taken to have incurred the *tax loss in the income year before the loss year.
Note:

This rule is needed because Division 36 allows a tax loss to be deducted only if it was incurred in an earlier income year.

170-15(3)  


Despite subsection (1), if the *tax loss is transferred because the conditions in section 170-32 are met, the *income company is taken to have incurred the tax loss for the income year for which the first prior transferor mentioned in that section incurred the tax loss.

170-15(4)  


Despite subsection (1), if the *tax loss is transferred because the condition in subsection 170-42(4) is met, the *income company is taken to have incurred the tax loss for the income year for which that subsection assumes the income company incurred the tax loss.

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