Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 170.25

Tax treatment of consideration for transferred tax loss

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

                     (a)  so much of the consideration as is given for the amount of the tax loss is neither assessable income nor exempt income of the loss company; and

                     (b)  a * capital gain does not accrue to the loss company 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.

             (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 incur 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.

Conditions for transfer



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