Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section limits the amount of losses in a particular * bundle of losses transferred under Subdivision 707 - A that can be * utilised by the transferee for an income year if:
(a) the losses in the bundle are transferred to the transferee after the start of the income year; or
(b) the value of the * available fraction for the bundle changes at a time within the period (the transferee's loss - holding period ) described in subsection (2).
(2) The transferee's loss - holding period:
(a) starts at the start of the income year or, if the losses in the * bundle were transferred to the transferee from another entity during the income year, at the time of the transfer; and
(b) ends when one of these events occurs:
(i) the income year ends;
(ii) the transferee becomes a * subsidiary member of a * consolidated group.
(3) The transferee cannot * utilise for the income year more of the losses than is reasonable having regard to:
(a) the method in section 707 - 310 for working out the maximum amount of the losses the transferee could utilise for the income year (apart from this section); and
(b) the number of days in the transferee's loss - holding period; and
(c) the value or values of the * available fraction for the * bundle during the transferee's loss - holding period; and
(d) the number of days in the transferee's loss - holding period for which the available fraction for the bundle has a particular value; and
(e) the principle that, if the transferee transferred the losses to itself under Subdivision 707 - A after the start of the income year, the amount of the losses it can utilise for the income year should be worked out as if:
(i) the losses had been included in the bundle from the start of the income year; and
(ii) the available fraction for the bundle had been 1 from the start of the income year until the time of the transfer; and
(f) any other relevant matters.
(4) Section 707 - 310 has effect subject to this section.