Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:19_1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 19 cl 1
Character Range: 276227–277231

1  After subsection 701‑30(3)
Insert:

 (3A) For the purposes of working out the entity's taxable income (if any) for the non‑membership period, determine:
 (a) whether the entity can *utilise a loss of any *sort transferred to the entity in the period; and
 (b) if the period started at the start of the income year—whether the entity can utilise a loss of any sort:
 (i) made by the entity, without a transfer, for an earlier income year; or
 (ii) transferred to the entity in an earlier income year;
as if the time just after the end of the period were the end of the income year and the entity carried on at that time the same business that it carried on just before that time. Paragraph (3)(a) has effect subject to this subsection.

Note: This means that things that happen in relation to the entity at the time it becomes a subsidiary member of the group are taken into account in determining whether the entity can utilise such a loss to affect its taxable income for the non‑membership period.