Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 267 - Income tax consequences for non-fixed trusts of change in ownership or control  

Subdivision 267-B - Deducting tax losses, and certain amounts in respect of debts, from earlier years  

SECTION 267-50   DEDUCTING PART OF A TAX LOSS  

267-50(1)    
If section 267-20 prevents a trust from deducting a tax loss because the trust does not meet the condition in section 267-40 or 267-45 or both conditions, it can deduct the part of the tax loss that is attributable to a part of the loss year.

267-50(2)    
However, the trust can do this only if, assuming that that part of the loss year had been treated as the whole of the loss year for the purposes of sections 267-40 and 267-45 , the trust would have been entitled to deduct the tax loss.