Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 14   Gains and losses

Part 4   Income Tax Assessment Act 1997 (revenue losses)

48   Section 170-25

Repeal the section, substitute:

170-25 Tax treatment of consideration for transferred tax loss

(1) If the *loss company receives any consideration from the *income company for the amount of the *tax loss:

(a) so much of the consideration as is given for the amount of the *tax loss is neither assessable income nor exempt income of the *loss company; and

(b) a capital gain does not accrue to the *loss company because of the receipt of the consideration.

(2) If the *income company gives any consideration to the *loss company for the amount of the *tax loss:

(a) the *income company cannot deduct the amount or value of the consideration; and

(b) the *income company does not incur a capital loss because of the giving of the consideration.


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