When the conditions in this section apply
(1) The conditions in this section apply instead of the conditions in subsections 170-130(1) and (2) if:
(a) the gain company is an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936 ) of a * foreign bank; and
(b) the * loss company made the * net capital loss because of one or more transfers of the net capital loss under Subdivision 707-A.
(2) Each transferor ( prior transferor ) of the * net capital loss under Subdivision 707-A must have been a company.
(3) It must have been possible to meet the conditions in subsections 170-130(1) and (2) in relation to the * loss company and the gain company assuming:
(a) the capital loss year were so much of the income year in which the * net capital loss was transferred to the loss company under Subdivision 707-A as occurred after the transfer; and
(b) so much (if any) of the application year as occurred before the transfer were disregarded.
(4) The gain company and each prior transferor must both be in existence during at least part of each of these periods:
(a) the period consisting of:
(i) if the prior transferor made the * net capital loss apart from Subdivision 707-A--the capital loss year; or
(ii) if the prior transferor made the net capital loss because of a transfer under Subdivision 707-A (other than a transfer from the prior transferor to itself)--so much of the income year in which the transfer occurred as was after the transfer (but before any later transfer of the loss from the prior transferor under that Subdivision);
(b) so much of the income year during which the net capital loss was transferred under Subdivision 707-A from the prior transferor to another company as occurs before the transfer (but after the start of the period described in paragraph (a));
(c) any intervening income year.
(5) The gain company must be a member of the same * wholly-owned group as each prior transferor during the whole or part of the periods described in subsection (4) for the prior transferor when both were in existence.