New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 26   Loss integrity rules: global method of valuing assets

Income Tax Assessment Act 1997

2   Subsection 165-115ZD(4)

Repeal the subsection, substitute:

Adjusted unrealised loss worked out under this section

(4) The adjusted unrealised loss referred to in paragraph (2)(a) is worked out using this method statement:

Method statement

Step 1. Add up the amount or value of each thing covered by subsection (5). (If the total exceeds the realised loss, reduce the total by the excess.)

Step 2. Reduce the step 1 amount by so much of the realised loss as it is reasonable to conclude is attributable to none of these:

(a) a notional capital loss, or a notional revenue loss, that the company has at that last alteration time in respect of a *CGT asset;

(b) a trading stock decrease in relation to that time for a CGT asset that was *trading stock of the company at that time.

Note: If the equity or debt is a revenue asset, the realised loss is different from the loss referred to in subsection (1): see subsection (9).