INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 310 - Loss relief for merging superannuation funds  

Subdivision 310-C - Consequences of choosing to transfer losses  

SECTION 310-40   Effect of transferring a tax loss  

310-40(1)  
To the extent that an earlier year tax loss is transferred to a receiving entity:


(a) the transferring entity is taken not to have incurred the loss for that earlier income year; and


(b) for the purposes of section 36-15, an amount equal to the transferred amount is taken to be:


(i) if the receiving entity is a *life insurance company - a *tax loss of the *complying superannuation class incurred by the receiving entity for the income year immediately prior to the transfer year; and

(ii) otherwise - a tax loss incurred by the receiving entity for the income year immediately prior to the transfer year; and


(c) for all other purposes of this Act, an amount equal to the transferred amount is taken to be:


(i) if the receiving entity is a life insurance company - a tax loss of the complying superannuation class incurred by the receiving entity for the transfer year; and

(ii) otherwise - a tax loss incurred by the receiving entity for the transfer year.

310-40(2)  
To the extent that a transfer year tax loss is transferred to a receiving entity:


(a) if the transferring entity is a *life insurance company - the sum of the transferring entity ' s deductions covered by subsection 320-137(4) (about complying superannuation assets) for the transfer year is reduced by an amount equal to the transferred amount; and


(b) if the transferring entity is not a life insurance company - the sum of the transferring entity ' s deductions for the transfer year is reduced by an amount equal to the transferred amount; and


(c) if the receiving entity is a life insurance company - an amount equal to the transferred amount is taken to be a *tax loss of the *complying superannuation class incurred by the receiving entity for the transfer year; and


(d) if the receiving entity is not a life insurance company - an amount equal to the transferred amount is taken to be a tax loss incurred by the receiving entity for the transfer year.


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