Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 4/6)
Character Range: 6031336–6033975

were transferred to the transferee from another entity during the income year, at the time of the transfer; and
 (b) ends when one of these events occurs:
 (i) the income year ends;
 (ii) the transferee becomes a *subsidiary member of a *consolidated group.
 (3) The transferee cannot *utilise for the income year more of the losses than is reasonable having regard to:
 (a) the method in section 707‑310 for working out the maximum amount of the losses the transferee could utilise for the income year (apart from this section); and
 (b) the number of days in the transferee's loss‑holding period; and
 (c) the value or values of the *available fraction for the *bundle during the transferee's loss‑holding period; and
 (d) the number of days in the transferee's loss‑holding period for which the available fraction for the bundle has a particular value; and
 (e) the principle that, if the transferee transferred the losses to itself under Subdivision 707‑A after the start of the income year, the amount of the losses it can utilise for the income year should be worked out as if:
 (i) the losses had been included in the bundle from the start of the income year; and
 (ii) the available fraction for the bundle had been 1 from the start of the income year until the time of the transfer; and
 (f) any other relevant matters.
 (4) Section 707‑310 has effect subject to this section.

707‑340  Utilising transferred losses while exempt income remains

Transferred film losses and net exempt film income
 (1) If:
 (a) the transferee of *film losses in a *bundle of losses has deducted from its *net exempt film income for an income year an amount of those losses that:
 (i) is equal to the amount of *exempt film income worked out under subsection 707‑310(3) for the transferee and the bundle; or
 (ii) if section 707‑335 affects the transferee's utilisation of losses in the bundle—is reasonable, having regard to that section; and
 (b) the transferee still has net exempt film income for the year and film losses remaining in the bundle;
the fact the transferee still has net exempt film income does not stop it deducting film losses remaining in the bundle from its *net assessable film income for the year.

Transferred tax losses and net exempt income
 (2) If:
 (a) the transferee of *tax losses (other than *film losses) in a *bundle of losses has deducted from its *net exempt income for an income year an amount of its tax losses (other than film losses) in the bundle that:
 (i) is equal to the amount of *exempt income worked out under subsection 707‑310(3) for the transferee and the bundle; or
 (ii) if section 707‑335 affects