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

SCHEDULE 2  

NET CAPITAL LOSSES AND THE INCOME TAX ASSESSMENT ACT 1997

Part 1 - Replacement of sections 170-110 to 170-145  

 View history note

 Hide history note

History

Part 1 heading inserted by No 16 of 2003 , s 3 and Sch 20 item 6, effective 24 October 2002.

Act No 16 of 2003 , s 3 and Sch 20, contains the folowing application provision:

8 Application  
(1)
The amendments of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 made by this Schedule apply to assessments for the income year including 1 July 2002 and later income years.

(2)
In this item:

income year
: has the same meaning as in the Income Tax Assessment Act 1997 .

Effect of transferring a net capital loss  

SECTION 170-125 (ARCHIVE)   TAX TREATMENT OF CONSIDERATION FOR TRANSFERRED NET CAPITAL LOSS  

170-125(1)    
If the loss company receives consideration from the gain company for the transferred amount:

(a) the 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 receiving the consideration.

Note:

However, the consideration may affect how section 170-220 modifies the cost base of direct and indirect interests in the loss company.

 View history note

 Hide history note

History

S 170-125(1) amended by No 169 of 1999.

170-125(2)    
If the gain company gives consideration to the loss company for the transferred amount:

(a) the gain company cannot deduct the consideration; and

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

Note:

However, the consideration may affect how section 170-225 modifies the cost base of direct and indirect interests in the gain company.

 View history note

 Hide history note

History

S 170-125(2) amended by No 169 of 1999.

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.