INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 79EB   LOSSES INCURRED WHILE A PDF NOT ALLOWABLE AFTER COMPANY CEASES TO BE A PDF  

79EB(1A)   [No operation from 1997/98 year onwards]  

This section does not apply to the 1997-98 year of income or a later year of income.

Note:

To work out whether a PDF can deduct a tax loss in the 1997-98 year of income or a later year of income: see Subdivision 195-A of the Income Tax Assessment Act 1997 .

79EB(1)   [Deduction for PDF losses]  

If a company is a PDF throughout the last day of a year of income in which it incurs a loss, the loss is not allowable as a deduction from the company's assessable income of a later year of income unless the company is a PDF throughout the later year of income.

79EB(2)   [Non-PDF losses]  

However, if:

(a) a company becomes a PDF during a year of income and is still a PDF at the end of the year of income; and

(b) the company incurs a loss in that year of income otherwise than because of section 79EA ;

subsection (1) of this section does not apply to so much of the loss as does not exceed the loss (if any) that, if the period ( ``the notional year'' ) beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company, the company would be taken to incur in the notional year.

79EB(3)   [Interpretation]  

An expression has in this section the same meaning as in section 79E .