Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:2_2:p3
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 3/7)
Character Range: 255875–258552

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 the bundle. The transferee may do so only by the day on which it lodges its income tax return for the first income year for which it utilises (except in accordance with section 707‑350) losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997.

 (6) The choice cannot be amended or revoked.

If this section applies more than once for the same value donor

 (7) If subsection (3) applies 2 or more times in relation to the same value donor but different real loss‑makers, the transferee cannot choose for those applications percentages of the value donor's modified market value at the initial transfer time that result in the total of the amounts worked out under those applications exceeding that value.

Increase in real loss‑maker's value reduces value donor's value

 (8) Work out the available fraction for a bundle of losses transferred under Subdivision 707‑A of the Income Tax Assessment Act 1997 from the value donor at the initial transfer time as if the value donor's modified market value at the time were reduced by the amount worked out under subsection (3).

This section does not affect utilisation of overall foreign losses

 (9) This section has effect for working out the available fraction of a bundle of losses only so far as it affects the utilisation of a tax loss, film loss or net capital loss. It does not affect the utilisation of an overall foreign loss (as defined in section 160AFD of the Income Tax Assessment Act 1936) included in a bundle of losses:
 (a) transferred from the real loss‑maker under Subdivision 707‑A of the Income Tax Assessment Act 1997; or
 (b) transferred from the value donor under that Subdivision.

Note: If a bundle of losses includes an overall foreign loss and a loss of another sort:

(a) utilisation of the overall foreign loss is limited by the available fraction for the bundle worked out apart from this section; and

(b) utilisation of the loss of the other sort is limited by the available fraction for the bundle as affected by this section, if applicable.

707‑327  Choosing available fraction to apply to value donor's loss

Conditions for choosing available fraction for value donor's loss

 (1) This section has effect for the purposes of working out under Subdivision 707‑C of the Income Tax Assessment Act 1997 how much of a tax loss, film loss or net capital loss can be utilised if:
 (a) section 707‑325 affects the