Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 245 - Forgiveness of commercial debts  

Subdivision 245-E - Application of net forgiven amounts  

Reduction of tax losses

SECTION 245-120   Allocation of total net forgiven amount in respect of tax losses  

245-120(1)    
You may choose:

(a) the order in which your *tax losses are reduced; and

(b) the amount applied to reduce each of those losses;

so long as the *total net forgiven amount is applied, to the maximum extent possible, in reduction of those losses.

245-120(2)    
If you do not make a choice for the purposes of subsection (1), the Commissioner may make the choice on your behalf in a reasonable way.