Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-A - Deducting tax losses of earlier income years  

Operative provisions

SECTION 165-20   When company can deduct part of a tax loss  

165-20(1)    
If section 165-10 (which is about deducting a tax loss) prevents a company from deducting a *tax loss, the company can deduct the part of the tax loss that was incurred during a part of the loss year .

165-20(2)    

However, the company can do this only if, assuming that part of the *loss year had been treated as the whole of the loss year for the purposes of section 165-10 , the company would have been entitled to deduct the *tax loss.