(1) The * income company must be an Australian resident and not a * prescribed dual resident.
(2) It must not be prevented by Division 165 or 175 from deducting the transferred amount in the * deduction year. Those Divisions do not apply to the * income company if the * loss year and the * deduction year are the same.
Note 1: Division 165 deals with the income tax consequences of changing ownership or control of a company. Division 175 deals with using a company's tax losses to avoid income tax.
Note 2: The condition in subsection (2) may not apply in some cases. See section 170-42.