FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 (ARCHIVE)
TAX LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1 of the Income Tax Assessment Act 1997 .
A transferring corporation (within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 ) can transfer a tax loss to a receiving corporation (within the meaning of that Act) so that the receiving corporation can deduct it.
170-5(2)
The corporations must be related in such a way that that Act would apply to a transfer of assets from the transferring corporation to the receiving corporation.
170-5(3)
The receiving corporation need not have enough assessable income to offset the transferred tax loss.
170-5(4)
The tax loss is transferred by an agreement between the 2 corporations.
170-5(5)
Special rules extend the scope of this Subdivision to let the head company of a consolidated group or MEC group transfer in some cases a tax loss the company incurred because of Subdivision 707-A . The rules do this by modifying the basis on which other provisions of this Subdivision operate.
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