Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 36 - Tax losses of earlier income years  

Subdivision 36-B - Effect of you becoming bankrupt  

Operative provisions

SECTION 36-45   Limit on deductions for amounts paid  
Tax losses generally

36-45(1)    
The total of your deductions under subsection 36-40(1) for amounts paid in the income year for debts incurred in the ^* loss year cannot exceed the amount of the ^* tax loss reduced by the sum of:

(a) your deductions under that subsection for amounts paid in earlier income years for debts incurred in the loss year; and

(b) any amounts of the tax loss * utilised in earlier income years; and

(c) any amounts of the tax loss that, apart from section 36-35, would have been deductible from your ^* net exempt income for the income year or earlier income years.

Film losses

36-45(2)    
The total of your deductions under subsection 36-40(2) for amounts paid in the income year for debts incurred in the ^* loss year cannot exceed the amount of the ^* film loss reduced by the sum of:

(a) your deductions under that subsection for amounts paid in earlier income years for debts incurred in the loss year; and

(b) any amounts of the film loss deducted in earlier income years; and

(c) any amounts of the film loss that, apart from section 36-35, would have been deductible from your ^* net exempt film income for the income year or earlier income years.