Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p20
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 20/20)
Character Range: 145647–147246

under Subdivision 707‑A after the initial transfer time.

 (4) A loss ceases to be included in a *bundle at the first time for which it is true that the loss cannot be *utilised or otherwise reduced by any entity for an income year ending after that time.

707‑320  What is the available fraction for a bundle of losses?

 (1) The available fraction for a *bundle of losses at a time is:
where:

transferee's adjusted market value at the initial transfer time means the amount that would be the market value, at the initial transfer time, of the transferee to which the losses in the *bundle were transferred at that time if:
 (a) the transferee did not have a loss of any *sort for an income year ending before that time; and
 (b) the balance of the transferee's *franking account were nil at that time.

Note: The value for the transferee will be worked out on the basis that subsidiary members of the consolidated group headed by the transferee are part of the transferee, because of section 701‑1 (the single entity rule).

 (2) However, if an event described in an item of the table happens, the available fraction for the *bundle is reduced or maintained just after the event by multiplying it by the factor identified in the item:

Factors affecting the available fraction
Item                                      Event                                                                                                                                                                                                                                                                         Factor