Taxation Determination TD 2003/23
Date of effect: 1 October 2003





Appendix: 2. Paragraph 10 of Taxation Ruling TR 98/12 states that: 3. A further agreement cannot involve the revocation of any prior agreement between the relevant companies. As explained in paragraph 11 of TR 98/12: 4. Any amount of tax loss transferred by the loss company is deemed not to have been incurred by the loss company to the extent of that amount (subsection 170-20(2) of the ITAA 1997) and therefore cannot be included in any further agreement. Thus the further agreement is a completely separate agreement from the initial agreement between the loss company and the income company. 5. To the extent that the principles in Subdivision 170-A are the same as those in: the above discussion of Subdivision 170-A applies equally to that provision. | Examples: Before the lodgement of T Pty Ltd's income tax return T Pty Ltd realised its net assessable income should have been $1,750,000. J Pty Ltd and T Pty Ltd then agreed to make a further loss transfer. For the purposes of paragraph 170-50(2)(b) the further loss transfer agreement should specify the amount of tax loss being transferred as $250,000 and not $1,750,000. The companies then requested further time within which to make a loss transfer agreement for the transfer of an amount of tax loss of $100,000 from D Pty Ltd to W Pty Ltd. Having regard to the facts of the case the Commissioner allows the extension of time to make the transfer. For the purposes of paragraph 170-50(2)(b) the further loss transfer agreement should specify the amount of tax loss being transferred as $100,000 and not $1,100,000. | Date of effect: 6. This Determination applies to years commencing both before and after its date of issue. However, it does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). Commissioner of Taxation 1 October 2003 Previously released in draft form as TD 2003/D9.


The number, subject heading, date of effect and paragraphs 1 to paragraphs 6 of this document are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner. The remainder of this Determination is administratively binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a 'public ruling' and how it is binding on the Commissioner. | 1. The further agreement should only specify the additional amount of tax loss being transferred. | 'A loss company may also enter into a further transfer document with an income company to which it has already transferred a part of its loss in the relevant income year. This is on the condition that a part of the total loss remains available for transfer and there is sufficient net assessable income within the income company to absorb the additional transfer. ...' | ' ...There is no provision within section 80G (Subdivision 170-A) that permits the revocation of a valid transfer document...'


Related rulings: TR 92/1 TR 92/20 TR 97/16 TR 98/12
Legislative references: ITAA 1997 170-20(2) ITAA 1997 170-50(2)(b) ITAA 1997 170-50(2)(d) ITAA 1997 Subdiv 170-A ITAA 1997 Subdiv 170-B ITAA 1936 80G ITAA 1936 160ZP TAA 1953 Pt IVAAA
Subject references: accumulated tax losses capital losses carry forward losses Commissioner's discretion companies company losses current year losses group companies group company loss transfers group company transfers holding companies losses net capital losses parent companies prior year losses subsidiary companies