Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 14   Gains and losses

Part 1   Income Tax Assessment Act 1936 (revenue losses)

16   Subsections 80G(17) and (18)

Repeal the subsections, substitute:

(17) If the loss company is a shareholder in the income company and receives any consideration from the income company for the transfer of the right to an allowable deduction to the income company under subsection (6):

(a) so much of the consideration as, in the opinion of the Commissioner, is given for the transfer of the right is not taken to be income derived by the loss company; and

(b) a capital gain does not accrue to the loss company because of the receipt of the consideration.

(18) If the income company gives any consideration to the loss company for the transfer of the right to an allowable deduction to the income company under subsection (6):

(a) the consideration is not an allowable deduction to the income company; and

(b) the income company does not incur a capital loss because of the giving of the consideration.