When the conditions in this section apply
(1) The conditions in this section apply instead of the conditions in subsections 170 - 30(1) and (2) if:
(a) the * income 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 incurred the * tax loss because of one or more transfers of the tax loss under Subdivision 707 - A.
(2) Each transferor ( prior transferor ) of the * tax loss under Subdivision 707 - A must have been a company.
(3) It must have been possible to meet the conditions in subsections 170 - 30(1) and (2) in relation to the * loss company and the * income company assuming:
(a) the * loss year were so much of the income year in which the * tax loss was transferred to the loss company under Subdivision 707 - A as occurred after the transfer; and
(b) so much (if any) of the * deduction year as occurred before the transfer were disregarded.
(4) The * income company and each prior transferor must both be in existence during at least part of each of these periods:
(i) if the prior transferor incurred the * tax loss apart from Subdivision 707 - A--the * loss year; or
(ii) if the prior transferor incurred the tax 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 tax 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 * income 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.