Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 417 - Timor Sea petroleum  

Subdivision 417-C - Capital gains tax  

SECTION 417-75  

417-75   Membership interests affected by transfer of entitlement to deductions or tax loss  
If:

(a) an entity chooses to transfer:

(i) under section 417-50 , an entitlement to deductions; or

(ii) under Subdivision 417-D , an amount of a *tax loss for an income year; and

(b) another entity *holds, either directly or indirectly, a *membership interest in that entity:

disregard a *capital loss from a *CGT event that arises in relation to the membership interest after the transfer takes effect, except to the extent that the entity can demonstrate that the loss is attributable to a matter other than the transfer.