Income Tax Assessment Act 1997



Division 175 - Use of a company's tax losses or deductions to avoid income tax  

Subdivision 175-B - Tax benefits from unused deductions  

SECTION 175-35   Tax loss resulting from disallowed deductions  


If a company has a taxable income for an income year because the Commissioner disallows under this Subdivision deductions of the company for the income year (or parts of them), the company may also have a *tax loss for the income year.

The company's tax loss for the income year is calculated as follows.

Total what the Commissioner has disallowed under this Subdivision.


If the company has *exempt income for the income year, subtract its * net exempt income .

Any amount remaining is the company's tax loss for the income year, which is called a loss year .


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 .


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