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INCOME TAX ASSESSMENT ACT 1997 - SECT 170.32

Tax loss incurred by the loss company because of a transfer under Subdivision 707 - A

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.

Conditions

  (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:

  (a)   the period consisting of:

  (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.


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