Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 417 - Timor Sea petroleum  

Subdivision 417-C - Capital gains tax  

SECTION 417-70   Tax treatment of consideration for transferred entitlement to deductions or tax loss  

417-70(1)    
If:

(a) you choose to transfer to another entity:

(i) under section 417-50 , an entitlement to deductions; or

(ii) under Subdivision 417-D , an amount of a *tax loss for an income year; and

(b) you receive any consideration from the other entity for the entitlement to deductions or for the amount of the tax loss;

then:

(c) so much of the consideration as is given for the entitlement to deductions or for the amount of the tax loss is not included in your assessable income or your exempt income; and

(d) a *capital gain does not accrue to you because of the receipt of the consideration.

417-70(2)    
If:

(a) you choose to transfer to another entity:

(i) under section 417-50 , an entitlement to deductions; or

(ii) under Subdivision 417-D , an amount of a *tax loss for an income year; and

(b) the other entity gives you any consideration for the entitlement to deductions or for the amount of the tax loss;

then:

(c) the other entity cannot deduct the amount or value of the consideration; and

(d) the other entity does not incur a *capital loss because of the giving of the consideration.