Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 175.15

  (1)   The Commissioner may disallow the * excluded loss if:

  (a)   a person has obtained or will obtain a tax benefit in connection with a * scheme; and

  (b)   the scheme would not have been entered into or carried out if the excluded loss had not been available to be taken into account for the purposes of:

  •   Division   36 (which is about tax losses of earlier years);

  •   Division   165 (which is about the income tax consequences of changing ownership or control of a company);

  •   former Subdivision   375 - G (which is about film losses).

  (2)   However, the Commissioner cannot disallow the * excluded loss if:

  (a)   the person had a * shareholding interest in the company at some time during the income year; and

  (b)   the Commissioner considers the tax benefit to be fair and reasonable having regard to that shareholding interest.

Note:   Section   175 - 100 allows the Commissioner to disallow an excluded loss of an insolvent company.

  (3)   An expression means the same in this section as in Part   IVA of the Income Tax Assessment Act 1936 .

Table of sections

175 - 20   Income or capital gain injected into company because of available deductions

175 - 25   Deduction injected into company because of available income or capital gain

175 - 30   Someone else obtains a tax benefit because of a deduction, income or capital gain available to company

175 - 35   Tax loss resulting from disallowed deductions