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

SCHEDULE 1  

TAX LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997

Subdivision 170-A - Transfer of tax losses from a transferring corporation to a receiving corporation  

Effect of transferring a tax loss

SECTION 170-25 (ARCHIVE)   TAX TREATMENT OF CONSIDERATION FOR TRANSFERRED TAX LOSS  

170-25(1)    
If the loss company receives any consideration from the income company for the amount of the tax loss:


(a) that consideration is neither assessable income nor exempt income of the loss company; and


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

Note:

However, the consideration may affect how section 170-210 modifies the cost base of direct and indirect interests in the loss company.


170-25(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 make a capital loss because of the giving of the consideration.

Note:

However, the consideration may affect how section 170-215 modifies the cost base of direct and indirect interests in the income company.

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