FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)

PART 3 - INCOME TAX RELIEF FOR TRANSFERS  

Division 8 - Tax losses  

Subdivision A - Tax losses and the Income Tax Assessment Act 1936  

SECTION 24 (ARCHIVE)   TRANSFER OF TAX LOSS FROM TRANSFERRING CORPORATION TO RECEIVING CORPORATION  

24(1A)   [No operation from 1997/98 year onward]  

This section does not enable a right to a deduction for an amount of a loss to be transferred in the 1997-98 year of income or a later year of income.

24(1)   [Application of company group loss transfer provisions]  

In addition to its effect apart from this section, section 80G of the Income Tax Assessment Act 1936 also has the effect it would have if all of the changes set out in subsections (2), (3) and (4) of this section were made.

24(2)   [Conditions for transfer modified]  

The first change is that paragraphs 80G(6) (a), (b) and (ba) of the Income Tax Assessment Act 1936 are to be replaced by the following paragraphs:

``(a) assuming that:

(i) an asset (within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 ) had been transferred by a transferring corporation within the meaning of that Act (the `loss company' ) to a receiving corporation within the meaning of that Act (the `income company' ) on the last day of a particular year of income of the loss company (the `notional transfer year' ); and

(ii) the requirements of paragraphs 7(6) (a) and (b) of that Act were satisfied in relation to that transfer;

that Act would have applied to that transfer; and

(b) the loss company is taken to have incurred a loss for the purposes of section 79E or 80 in a year of income (the `loss year' ); and

(ba) the loss year is:

(i) the year of income in which that Act commenced; or

(ii) an earlier year of income; and

(bb) both the following conditions are satisfied in relation to a year of income (the `income year' ) of the income company:

(i) either:

(A) the income year ends at the end of the notional transfer year; or

(B) the income year corresponds to the year of income of the loss company next following the notional transfer year;

(ii) the income year is:

(A) the year of income in which that Act commenced; or

(B) one of the 10 following years of income; and''.

24(3)   [Group company, limitation requirements omitted]  

The second change is that paragraphs 80G(6)(d) and (e) and subsections 80G(7) , (8) , (10) and (14) of the Income Tax Assessment Act 1936 are to be omitted.

24(4)   [Year loss incurred modified]  

The third change is that paragraphs 80G(6) (f) and (g) of the Income Tax Assessment Act 1936 are to be replaced by the following paragraphs:

``(f) if the loss year is the same year of income as the income year - the year of income immediately preceding the loss year; or

(g) if the income year is a year of income later than the loss year - the loss year.''.