Document ID: chunk:federal_register_of_legislation:C2004C01244:schedule:1:p3
Version: federal_register_of_legislation:C2004C01244
Segment Type: schedule
Provision Reference: sch 1 (pt 3/5)
Character Range: 101368–104018

from deducting for the deduction year a transferred amount of a *tax loss only if there has been a change in ownership or control in the income company between the transfer year and the deduction year.

 (3) That Subdivision applies to the transferred amount as if all references to "*loss year" in that Subdivision were references to "*transfer year".

170-25  Tax treatment of payment for transferred tax loss

 (1) A payment received for an amount of a *tax loss is neither assessable income nor exempt income of the *loss company.

 (2) The *income company cannot deduct a payment it makes for an amount of a *tax loss.

Conditions for transfer

170-28  Financial Corporations (Transfer of Assets and Liabilities) Act 1993 must apply to asset transfer from loss company to income company

  If it were assumed that:
 (a) an asset (within the meaning of the Financial Corporations (Transfer of Assets and Liabilities) Act 1993) had been transferred by the *loss company to the *income company on the last day of a particular income year of the *loss company (the notional transfer year); and
 (b) the requirements of paragraphs 7(6)(a) and (b) of that Act were satisfied in relation to that transfer;
then it must be the case that that Act would have applied to that transfer.

170-32  The loss year

  The *loss year must be either:
 (a) the income year in which the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 commenced; or
 (b) an earlier income year.

170-33  The transfer year

 (1) The *transfer year must either:
 (a) end at the end of the *notional transfer year; or
 (b) correspond to the income year of the *loss company that next follows the *notional transfer year.

 (2) Also, the *transfer year must be one of the 5 income years after the  income year in which the Financial Corporations (Transfer of Assets and Liabilities) Act 1993 commenced.

170-35  The loss company

  If the *loss year and the *transfer year are the same, it must be the case that the *loss company was not required to calculate the *tax loss under section 165-70 or 175-35.

170-50  Transfer by written agreement

 (1) The transfer must be made by a written agreement between the *loss company and the *income company.

 (2) The agreement must:
 (a) specify the *transfer year (which may be earlier than the income year in which the agreement is made); and
 (b) specify the amount of the *tax 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 *income company's *income tax return for the *transfer year, or within such further time as the