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  

Conditions for transfer

SECTION 170-32   Tax loss incurred by the loss company because of a transfer under Subdivision 707-A  

When the conditions in this section apply

170-32(1)  
The conditions in this section apply instead of the conditions in subsections 170-30(1) and (2) if:


(a) the *income company is an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936 ) of a *foreign bank; and


(b) the *loss company incurred the *tax loss because of one or more transfers of the tax loss under Subdivision 707-A . Conditions

170-32(2)  
Each transferor ( prior transferor ) of the *tax loss under Subdivision 707-A must have been a company.

170-32(3)  
It must have been possible to meet the conditions in subsections 170-30(1) and (2) in relation to the *loss company and the *income company assuming:


(a) the *loss year were so much of the income year in which the *tax loss was transferred to the loss company under Subdivision 707-A as occurred after the transfer; and


(b) so much (if any) of the *deduction year as occurred before the transfer were disregarded.

170-32(4)  


The *income company and each prior transferor must both be in existence during at least part of each of these periods:


(a) the period consisting of:


(i) if the prior transferor incurred the *tax loss apart from Subdivision 707-A - the *loss year; or

(ii) if the prior transferor incurred the tax loss because of a transfer under Subdivision 707-A (other than a transfer from the prior transferor to itself) - so much of the income year in which the transfer occurred as was after the transfer (but before any later transfer of the loss from the prior transferor under that Subdivision);


(b) so much of the income year during which the tax loss was transferred under Subdivision 707-A from the prior transferor to another company as occurs before the transfer (but after the start of the period described in paragraph (a));


(c) any intervening income year.

170-32(5)  


The *income company must be a member of the same *wholly-owned group as each prior transferor during the whole or part of the periods described in subsection (4) for the prior transferor when both were in existence.

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