INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 415 - Designated infrastructure projects  

Subdivision 415-B - Tax losses and bad debts  

Guide to Subdivision 415-B

SECTION 415-10   What this Subdivision is about  


The unutilised amounts of a designated infrastructure project entity ' s tax losses are increased each year by the long term bond rate. A designated infrastructure project entity is a fixed trust or company that:

  • (a) carries on an infrastructure project designated under Subdivision 415-C ; and
  • (b) only engages, and has only ever engaged, in activities for the purposes of carrying on that designated infrastructure project.
  • The tests that apply in relation to tax losses and bad debts if there is a change of ownership of an entity are modified so that periods during which the entity is a designated infrastructure project entity are not tested.

    The loss utilisation rules in Subdivision 707-C do not apply if the head company of a consolidated group is a designated infrastructure project entity after another designated infrastructure project entity joins the group.

    Note:

    The transfer rules in subsection 707-120(1A) do not apply if a designated infrastructure project entity joins a consolidated group: see subsection 707-120(5) .


    TABLE OF SECTIONS
    TABLE OF SECTIONS
    Uplift of tax losses
    415-15 Uplift of tax losses of designated infrastructure project entities
    415-20 Designated infrastructure project entity
    Change of ownership of trusts and companies
    415-25 Tax losses of trusts
    415-30 Bad debts written off etc. by trusts
    415-35 Tax losses of companies
    415-40 Bad debts written off by companies
    Consolidated groups
    415-45 Losses transferred to head companies of consolidated groups


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