Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 4   Amendments relating to pooled development funds Interpretation

10   Transfer of loss within company group

Section 80G of the Principal Act is amended by inserting after subsection (9) the following subsections:

"(9A) If the loss company was a PDF throughout the last day of the loss year, the right to an allowable deduction in respect of any part of the loss incurred by the loss company in the loss year must not be transferred.

"(9B) However, if:

(a) the loss company became a PDF during the loss year and was still a PDF at the end of the loss year; and

(b) the loss company incurred a loss in the loss year otherwise than because of section 79EA;

subsection (9A) does not apply to so much of the loss as does not exceed the loss (if any) that, if the period ('the notional year') beginning at the start of the loss year and ending immediately before the loss company became a PDF were a year of income of the loss company, the loss company would be taken to incur in the notional year.".