Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-B - Working out the taxable income and tax loss for the income year of the change  

Working out the company's tax loss

SECTION 165-70   How to calculate the company's tax loss for the income year  

165-70(1)  
The company's tax loss for the income year is calculated as follows.

165-70(2)  
Total the *notional losses worked out under section 165-50 or 165-75 .

165-70(3)  
Add to the total in subsection (2) the amount (if any) by which the company's *full year deductions of these kinds:


(a) deductions for bad debts under section 8-1 (about general deductions) or section 25-35 (about bad debts);


(b) (Omitted by No 121 of 1997)


(c) deductions, so far as they are allowable under Division 8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;

exceed the total of:


(d) the *notional taxable incomes (if any); and

To work out the notional taxable income: see section 165-50 .


(e) the *full year amounts referred to in section 165-60 (if any); and


(f) any *net capital gain of the company for the income year.

165-70(4)  
If the company *derived exempt income, subtract its *net exempt income (worked out under section 36-20 ).

165-70(5)  
Any amount remaining is the company's tax loss for the income year, which is called a loss year .

Note:

The meanings of tax loss and loss year are modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.

To find out how much of the tax loss can be deducted in later income years: see Subdivision 165-A .

To find out how to deduct it: see section 36-17 .


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.