New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 12   Consolidation: amendments relating to Division 170

Income Tax (Transitional Provisions) Act 1997

24   Before Subdivision 170-B

Insert:

Subdivision 170-A - Transfer of tax losses within certain wholly-owned groups of companies

Table of sections

170-45 Special rules affecting utilisation of losses in a bundle do not affect the amount of a tax loss that can be transferred

170-55 Ordering rule for losses previously transferred under Subdivision 707-A of theIncome Tax Assessment Act 1997

170-45 Special rules affecting utilisation of losses in a bundle do not affect the amount of a tax loss that can be transferred

In working out an amount under subsection 170-45(4) of theIncome Tax Assessment Act 1997 (which may limit the amount of a tax loss that can be transferred under Subdivision 170-A of that Act), disregard these sections of this Act:

(a) section 707-325 (which lets the available fraction for a bundle of losses be greater than it would otherwise be);

(b) section 707-327 (which effectively lets the available fraction relevant to the utilisation of a loss be chosen in some cases);

(c) section 707-350 (which sets the limit on utilising certain losses in a bundle).

170-55 Ordering rule for losses previously transferred under Subdivision 707-A of the Income Tax Assessment Act 1997

If 2 or more losses that a company can transfer for an income year under Subdivision 170-A of theIncome Tax Assessment Act 1997 were previously transferred to it under Subdivision 707-A of that Act, it must transfer first those losses (if any) covered by subsection 707-350(1).