Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 9/10)
Character Range: 798817–801459

minerals explorers

Item  For the special rules about this situation...                 See:
1.    A greenfields minerals explorer creates exploration credits.  Section 418‑95

Subdivision 36‑B—Effect of you becoming bankrupt

Guide to Subdivision 36‑B

36‑30  What this Subdivision is about

      After you become bankrupt, you cannot deduct a tax loss that you incurred beforehand. However, you may be able to deduct repayments of debts you incurred in the loss year.

Table of sections

Operative provisions
36‑35 No deduction for tax loss incurred before bankruptcy
36‑40 Deduction for amounts paid for debts incurred before bankruptcy
36‑45 Limit on deductions for amounts paid

Operative provisions

36‑35  No deduction for tax loss incurred before bankruptcy
 (1) If:
 (a) you became bankrupt; or
 (b) you were released from a debt by the operation of an Act relating to bankruptcy;
before the income year, you cannot deduct a *tax loss that you incurred before the day on which you either became bankrupt or were released.
 (2) If:
 (a) you became bankrupt before the income year; and
 (b) the bankruptcy is later annulled under section 74 of the Bankruptcy Act 1966 because your creditors have accepted your proposal for a composition or scheme of arrangement; and
 (c) under the composition or scheme of arrangement, you have been, will be or may be released from some or all of the debts from which you would have been released if you had instead been discharged from the bankruptcy;
you cannot deduct a *tax loss that you incurred before the day on which you became bankrupt.

36‑40  Deduction for amounts paid for debts incurred before bankruptcy

Tax losses generally
 (1) If:
 (a) you pay an amount in the income year for a debt that you incurred in an earlier income year; and
 (b) you have a *tax loss covered by section 36‑35 for that earlier income year;
you can deduct the amount paid, but only to the extent that it does not exceed so much of the debt as the Commissioner is satisfied was taken into account in calculating the amount of the tax loss.

Film losses
 (2) If:
 (a) you pay an amount in the income year for a debt that you incurred in an earlier income year; and
 (b) you incurred the debt in the course of deriving or gaining *assessable film income or *exempt film income; and
 (c) you also incurred a *film loss covered by section 36‑35 in that earlier income year;
you can deduct the amount paid, but only to the extent that it does not exceed so much of the debt as the Commissioner is satisfied was taken into account in calculating the amount of the film loss.
 (3) A film loss is the *film component