Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:13_1:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 13 cl 1 (pt 1/10)
Character Range: 222884–225689

1  Before section 719‑300
Insert:

Guide to Subdivision 719‑F

719‑250  What this Subdivision is about

      This Subdivision modifies the rules about transferring and utilising losses so the rules operate appropriately in relation to MEC groups, taking account of the special characteristics of those groups. The modifications mainly affect:

                (a) rules about maintaining the same ownership to be able to utilise a loss; and
                (b) rules for working out how much of a loss can be utilised by reference to bundles of losses and their available fractions.

Table of sections

Maintaining the same ownership to be able to utilise loss

719‑255 Special rules
719‑260 Special test for utilising a loss because a company maintains the same owners
719‑265 What is the test company?
719‑270 Assumptions about the test company having made the loss for an income year
719‑275 Assumptions about nothing happening to affect direct and indirect ownership of the test company
719‑280 Assumptions about the test company failing to meet the conditions in section 165‑12

Same business test and change of head company

719‑285 Same business test and change of head company

Bundles of losses and their available fractions

719‑300 Application
719‑305 Subdivision 707‑C affects utilisation of losses made by ongoing head company while it was head company
719‑310 Adjustment of available fractions for bundles of losses previously transferred to ongoing head company
719‑315 Further adjustment of available fractions for all bundles
719‑320 Limit on utilising losses other than the prior group losses
719‑325 Cancellation of all losses in a bundle

[This is the end of the Guide.]

Maintaining the same ownership to be able to utilise loss

719‑255  Special rules

 (1) This section and section 719‑260 have effect for the purposes of working out whether a loss can be *utilised for an income year (the claim year) by a company (the focal company) that made the loss if:
 (a) section 165‑12 is relevant to the question whether the focal company can utilise the loss; and
 (b) the focal company is the *head company of a *MEC group at any time in its *ownership test period for the loss (as affected by section 707‑205, if relevant).

Note: If the focal company made the loss because of a transfer under Subdivision 707‑A, section 707‑205 has the effect that the ownership test period starts for the focal company at the time of the transfer.

Section 707‑210 does not have effect

 (2) Section 707‑210 does not have effect for the purposes of working out whether the focal company can *utilise the loss for the claim year.

Note: Section 707‑210 is about whether a company can utilise a loss it made because the loss was transferred to it under Subdivision 707‑A because the transferor