Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/35)
Character Range: 3229029–3231674

sort—those losses could have been applied only in the order in which the loss company made them.

                  Note 1: If the assumption in subsection 170‑142(2) is relevant to the bundle, it would have included losses made by the gain company and transferred (or taken to be transferred) to the company (from itself) under Subdivision 707‑A.
                  Note 2: If the assumption in paragraph 170‑142(4) is relevant to the bundle, it would have included losses actually made by the first link company and transferred (by one or more transfers under Subdivision 707‑A) to the gain company.
           Step 3. Total every result of step 2 for the *net capital loss.

170‑150  Transfer by written agreement
 (1) The transfer must be made by a written agreement between the loss company and the gain company.
 (2) The agreement must:
 (a) specify the income year of the transfer (which may be earlier than the income year in which the agreement is made); and
 (b) specify the amount of the *net capital loss being transferred; and
 (c) be signed by the public officer of each company; and
 (d) be made on or before the day of lodgment of the gain company's *income tax return for the application year, or within such further time as the Commissioner allows.
Note: The agreement will usually be made in the next income year after the one for which the gain company will apply the loss.

170‑155  Losses must be transferred in order they are made
 (1) If the loss company has 2 or more *net capital losses that it can transfer in the application year, it can transfer them only in the order in which it made them.
 (2) If:
 (a) the *loss company has 2 or more *net capital losses it can transfer for the application year; and
 (b) it made at least one of those losses apart from Subdivision 707‑A and at least one of those losses because of a transfer under that Subdivision;
it can transfer under this Subdivision the losses it made because of a transfer under Subdivision 707‑A only after transferring under this Subdivision the losses it made apart from that Subdivision.
 (3) For the purposes of subsection (2), treat a loss made by the company both apart from Subdivision 707‑A and because of a transfer under that Subdivision as a loss made because of a transfer under that Subdivision.
 (4) Subsection (1) has effect subject to subsection (2).

170‑160  Gain company cannot transfer transferred net capital loss
  The gain company cannot transfer an amount of a *net capital loss transferred to it, or any part of the amount.

Effect of agreement to transfer more than can be transferred

170‑165  Agreement transfers as much as can