Document ID: chunk:federal_register_of_legislation:C2010C00578:clause:8_22
Version: federal_register_of_legislation:C2010C00578
Segment Type: clause
Provision Reference: sch 8 cl 22
Character Range: 97865–99500

22  Subsections 45‑330(2A) and (3) in Schedule 1
Repeal the subsections, substitute:

Special rule for some entities

 (2A) If an entity:
 (a) has *tax losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997; or
 (b) is a *corporate tax entity at any time during the *base year;
the adjusted taxable income of the entity for the base year is worked out under subsection (1) as if paragraph (1)(c) were replaced by the following provision:
 (c) the lesser of the following amounts:
 (i) the amount of any tax loss, to the extent that you can carry it forward to the next income year;
 (ii) the amount of the deductions for tax losses used in making your *base assessment.

Special rule for life insurance companies

 (3) The adjusted taxable income of a *life insurance company for the *base year is worked out as follows:

      Method statement
           Step 1. Recalculate the *ordinary class of the taxable income for the *base assessment on the basis that the assessable income that relates to the class did not include any *net capital gain.
           Step 2. Add to the step 1 result the *complying superannuation class of the taxable income for the *base assessment.
           Step 3. Add to the step 2 result the deductions for *tax losses used in making the *base assessment.
           Step 4. Reduce the step 3 result by the lesser of the following amounts:

                (a) the amount of any tax loss, to the extent that the *life insurance company can carry it forward to the next income year;
                (b) deductions for *tax losses used in making the *base assessment.