Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 310.40

Effect of transferring a tax loss

             (1)  To the extent that an earlier year tax loss is transferred to a receiving entity:

                     (a)  the transferring entity is taken not to have incurred the loss for that earlier income year; and

                     (b)  for the purposes of section 36-15, an amount equal to the transferred amount is taken to be:

                              (i)  if the receiving entity is a * life insurance company--a * tax loss of the * complying superannuation class incurred by the receiving entity for the income year immediately prior to the transfer year; and

                             (ii)  otherwise--a tax loss incurred by the receiving entity for the income year immediately prior to the transfer year; and

                     (c)  for all other purposes of this Act, an amount equal to the transferred amount is taken to be:

                              (i)  if the receiving entity is a life insurance company--a tax loss of the complying superannuation class incurred by the receiving entity for the transfer year; and

                             (ii)  otherwise--a tax loss incurred by the receiving entity for the transfer year.

             (2)  To the extent that a transfer year tax loss is transferred to a receiving entity:

                     (a)  if the transferring entity is a * life insurance company--the sum of the transferring entity's deductions covered by subsection 320-137(4) (about complying superannuation assets) for the transfer year is reduced by an amount equal to the transferred amount; and

                     (b)  if the transferring entity is not a life insurance company--the sum of the transferring entity's deductions for the transfer year is reduced by an amount equal to the transferred amount; and

                     (c)  if the receiving entity is a life insurance company--an amount equal to the transferred amount is taken to be a * tax loss of the * complying superannuation class incurred by the receiving entity for the transfer year; and

                     (d)  if the receiving entity is not a life insurance company--an amount equal to the transferred amount is taken to be a tax loss incurred by the receiving entity for the transfer year.

Table of sections

310-45      Choosing the assets roll-over

310-50      Choosing the form of the assets roll-over



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