Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 4   Amendments relating to pooled development funds Interpretation

19   Transfer of net capital loss within company group

Section 160ZP of the Principal Act is amended by inserting before subsection (10) the following subsections:

"(9B) If the loss company was a PDF throughout the last day of the loss year, no part of the net capital loss incurred by that company in respect of that year can be specified in a notice under paragraph (7)(c).

"(9C) However, subsection (9B) does not apply to so much of the net capital loss as does not exceed the amount (if any) by which the total of:

(a) if the loss company is taken to have incurred a net capital loss in respect of the last year of income before the year of income at the start of which, or during which, it became a PDF - that net capital loss; and

(b) if the loss company incurred a capital loss or capital losses after that last year of income and before it became a PDF - that capital loss or those capital losses;

exceeds:

(c) if a capital gain or capital gains accrued to the loss company after that last year of income and before the end of the loss year - that capital gain or the total of those capital gains; or

(d) otherwise - a nil amount.".