Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 170 - Treatment of certain company groups for income tax purposes  

Subdivision 170-B - Transfer of net capital losses within certain wholly-owned groups of companies  

Conditions for transfer

SECTION 170-130   Companies must be in existence and members of the same wholly-owned group etc.  

170-130(1)    


Both companies must be in existence during at least part of each of the following income years:


(a) the capital loss year; and


(b) the application year; and


(c) any intervening income year.

Note:

In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170-132 and 170-133 .


170-130(2)    


Also, both companies must be members of the same *wholly-owned group at all times during those income years when both companies were in existence.
Note:

In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170-132 and 170-133 .


170-130(3)    


One of the companies must be an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936 ) of a *foreign bank.
Note:

The Australian branch can be taken to be a separate entity from the foreign bank for this Subdivision. See Part IIIB of the Income Tax Assessment Act 1936 .


170-130(4)    


The other company must be covered by an item of this table.


The other company
Item The other company must: At this time:
1 Be the *head company of a *consolidated group The end of the application year or, if the company ceases to be in existence during the application year, just before the cessation
2 Be the *head company of a *MEC group The end of the application year or, if the group ceases to exist during the application year because the company ceases to be in existence, just before the cessation
3 Not be a *member of a *consolidatable group The end of the application year or, if the company ceases to be in existence during the application year, just before the cessation



 

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