Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

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History

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Division 707 - Losses for head companies when entities become members etc.  

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History

Div 707 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdivision 707-B - Can a transferred loss be utilised?  

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History

Subdiv 707-B inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Operative provisions

SECTION 707-205   Modified period for test for maintaining same ownership  

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707-205(1)    

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This section modifies Divisions 165 , 166 and 167 for the purposes of working out whether a company can *utilise a loss of any *sort that it made because of a transfer under Subdivision 707-A .

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History

S 707-205(1) amended by No 130 of 2015, s 3 and Sch 4 item 47, by substituting " Divisions 165, 166 and 167 " for " Divisions 165 and 166 " , effective 17 September 2015.

S 707-205(1) amended by No 83 of 2004.

707-205(2)    

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Subdivision 165-A and Divisions 166 and 167 operate for those purposes as if the *loss year started at the time of the transfer.

Note 1:

This means that the ownership test period defined by subsection 165-12(1) and the test period defined by subsection 166-5(2) start at the time of the transfer.

Note 2:

Without this section, those periods would start at the start of the income year in which the transfer occurred, so events occurring before the transfer (such as changes in holdings of voting power, rights to dividends or rights to capital) could affect whether the company could utilise the tax loss or net capital loss.

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History

S 707-205(2) amended by No 130 of 2015, s 3 and Sch 4 item 48, by substituting " Divisions 166 and 167 " for " Division 166 " , effective 17 September 2015.

S 707-205(2) amended by No 147 of 2005.

S 707-205 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

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