Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:2_2:p2
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 2/7)
Character Range: 253492–256126

out of the available fraction for a bundle of losses under subsection 707‑320(1) of the Income Tax Assessment Act 1997 if:
 (a) the transferee mentioned in that subsection chooses under subsection (5) of this section to increase the available fraction using a percentage of the modified market value of a company (the value donor) other than the real loss‑maker mentioned in subsection 707‑315(1) of that Act for the bundle; and
 (b) both the real loss‑maker and the value donor became members of the group mentioned in subsection 707‑315(1) of that Act in connection with the bundle at the time (which is the initial transfer time mentioned in that subsection in connection with the bundle) the group became a consolidated group; and
 (c) the initial transfer time is before 1 July 2004; and
 (d) the bundle includes a loss that is not:
 (i) an overall foreign loss (as defined in section 160AFD of the Income Tax Assessment Act 1936); or
 (ii) a loss whose utilisation is affected by section 707‑350 (about utilisation of certain losses originally made for an income year ending on or before 21 September 1999); and
 (e) the value donor would have been able to transfer the loss to the transferee under Subdivision 707‑A of the Income Tax Assessment Act 1997 at the initial transfer time had the value donor:
 (i) made the loss for the income year for which the real loss‑maker made it; and
 (ii) not utilised it; and
 (f) the requirement in subsection (2) is met.

 (2) It must have been possible for the real loss‑maker to have transferred the loss to the value donor under Subdivision 170‑A or 170‑B of the Income Tax Assessment Act 1997 for an income year consisting of the period described in section 707‑328 had the conditions in that section existed.

Increase in the modified market value of the real loss‑maker

 (3) Work out the available fraction for the bundle of losses as if the modified market value of the real loss‑maker at the initial transfer time were increased by the amount worked out using the formula:

 (4) In subsection (3):

total of real loss‑maker's Division 170 losses in bundle is the total of the amount of each loss:
 (a) that is covered by paragraphs (1)(d) and (e); and
 (b) in relation to which the requirements in subsection (2) are met.

total of real loss‑maker's non‑foreign losses in bundle is the total of the amount of each loss that is described in paragraph (1)(d).

Choice to increase available fraction

 (5) The transferee may choose to use a fixed percentage (greater than 0% and not more than 100%) of the value donor's modified market value to increase the available fraction for