Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:2_3
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 266848–269388

3                              The third income year ending after the initial transfer time, or a later income year  The difference between:
                                                                                                                     (a) the total of the amounts of the losses that were transferred to the transferee; and
                                                                                                                     (b) the total of the amounts of the losses utilised for earlier income years ending after the initial transfer time

Subdivision 707‑C of Income Tax Assessment Act 1997 disapplied

 (4) Subdivision 707‑C of the Income Tax Assessment Act 1997 operates as if the losses had been made by the transferee without being transferred under Subdivision 707‑A of that Act.

Note: This has 2 effects. First, Subdivision 707‑C of that Act does not limit utilisation of the losses. Secondly, it affects the limit that Subdivision sets on utilising other losses in any bundle (because that limit depends on the transferee's income and gains remaining after utilisation of losses that have not been transferred under Subdivision 707‑A of that Act).

Making choice

 (5) The transferee may choose that this section apply to the utilisation for any income year of all losses (of any sort) in the bundle that meet the conditions in paragraphs (1)(a), (b), (c) and (d). 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 could utilise any losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997 (as described in subsection (1) or otherwise).

When choice has effect

 (6) The choice has effect for that income year and all later income years (and cannot be revoked).

Future transfer of the losses not affected

 (7) This section does not limit the transfer under Subdivision 707‑A of the Income Tax Assessment Act 1997 of any of the losses from the transferee to another company.

Subdivision 707‑D—Special rules about losses

Table of sections

707‑405 Special rules about losses referable to part of income year

707‑405  Special rules about losses referable to part of income year

  Section 707‑405 of the Income Tax Assessment Act 1997 has effect in relation to this Division, and Division 170 of that Act as it has effect for the purposes of this Division, in the same way as that section has effect in relation to Division 707 of that Act.

[The next Division is Division 820.]