Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_5:p1
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/4)
Character Range: 32663–35350

5  Before Division 820
Insert:

Division 770—Foreign income tax offsets and foreign losses

Table of Subdivisions

770‑A Transitional foreign losses (common rules)
770‑B Transitional foreign losses (special rules for consolidated groups)
770‑C Transitional foreign losses (special rules for CFCs)
770‑D Transitional foreign income tax offsets (common rules)
770‑E Transitional foreign income tax offsets (special rules for consolidated groups)

Subdivision 770‑A—Transitional foreign losses (common rules)

Table of sections

Converting an overall foreign loss into a type of tax loss

770‑1 Converting a past foreign loss into a tax loss
770‑5 Convertible foreign loss
770‑10 Reducing the amount of an overall foreign loss of a class of assessable foreign income

Utilising transitional foreign losses

770‑15 No special rules if convertible foreign losses total less than or equal to $10,000 or choice made
770‑20 Starting total for loss parcel
770‑25 Tax loss has foreign loss component
770‑30 Deduction limit for foreign loss component
770‑35 Offset limit to take account of deducted foreign loss component

Converting an overall foreign loss into a type of tax loss

770‑1  Converting a past foreign loss into a tax loss

 (1) The Income Tax Assessment Act 1936 (the 1936 Act), the Income Tax Assessment Act 1997 (the 1997 Act) and this Act operate for the purposes of the income years mentioned in subsection (3) as if an entity that has a convertible foreign loss for an earlier income year under section 770‑5 had a tax loss for the earlier year equal to:
 (a) the amount (if any) that would have been the entity's tax loss for the earlier year under section 36‑10, 165‑70, 175‑35 or 701‑30 of the 1997 Act (about deducting past tax losses); plus
 (b) the amount of the entity's convertible foreign loss for the earlier year.

Note 1: This is instead of an amount of tax loss worked out under section 36‑10, 165‑70, 175‑35 or 701‑30 of the 1997 Act.

Note 2: This section does not affect the amount (if any) of an entity's taxable income for the year. An entity may be taken to have a tax loss for a year under this section, but also have a taxable income for the year.

Note 3: This section has an expanded operation for consolidated groups: see section 770‑90.

 (2) The earlier year is taken for those purposes to be a loss year for the entity if the entity would not otherwise have a tax loss for that year.

 (3) The income years are:
 (a) the first income year starting on or after the first 1 July that occurs after the day on which the Tax Laws Amendment (2007 Measures No. 4) Act 2007 receives the Royal Assent (the commencement year); and
 (b) later income years.