Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 830 - Foreign hybrids  

Subdivision 830-D - Special rules applicable when an entity becomes or ceases to be a foreign hybrid  

Note:

In the case of a foreign hybrid company, references in this Subdivision that relate to partnerships are to be read subject to Subdivision 830-B . For example, a reference to a partner will be a reference to a shareholder in the company who is treated by Subdivision 830-B as a partner.

SECTION 830-115   Tax losses cannot be transferred to a foreign hybrid  

830-115(1)    
If an entity is a *foreign hybrid in relation to an income year, it cannot deduct in that income year a *tax loss for a *loss year in relation to which it was not a foreign hybrid.

Former foreign hybrid can deduct tax losses for income years before it became a foreign hybrid

830-115(2)    
This section does not prevent an entity that:

(a) is not a *foreign hybrid in relation to an income year (the post-hybrid year ); and

(b) was a foreign hybrid in relation to a previous income year; and

(c) was not a foreign hybrid in relation to an income year (the pre-hybrid year ) before the previous year;

from deducting, in the post-hybrid year, a *tax loss for the pre-hybrid year.