Income Tax Assessment Act 1997
This section applies if a company becomes a *PDF during an income year and is still a PDF at the end of it. 195-15(2)
Divide the income year into periods as follows: (a) the non-PDF period is the period beginning at the start of the income year and ending when the company becomes a *PDF; (b) the PDF period is the rest of the income year. 195-15(3)
For each period, work out whether the company has a taxable income or a *tax loss (or both), treating each period as if it were an income year. 195-15(4)
If the company has: (a) a taxable income for the non-PDF period; and (b) a *tax loss for the PDF period;
that tax loss is a tax loss of the company for the income year.
The company can only deduct the tax loss while it is a PDF: see section 195-5 .195-15(5)
If the company has a *tax loss for the non-PDF period: (a) section 195-5 does not prevent the company from deducting its tax loss for the income year in a later income year; and (b) 195-10 does not prevent the company from transferring an amount of the tax loss under Subdivision 170-A (which is about the transfer of tax losses within certain wholly-owned groups of companies); and (c) 195-37 does not prevent the company from *carrying back its tax loss for the purpose of working out the amount of the company ' s *loss carry back tax offset for the 2020-21, 2021-22 or 2022-23 income year;
to the extent that the tax loss does not exceed the tax loss for the non-PDF period.
These rules apply in addition to the other rules about how *tax losses are applied or transferred.
The other rules start in Division 36 (which is about tax losses of earlier income years).
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