Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 11/11)
Character Range: 3212440–3214024

gain company gives consideration to the loss company for the transferred amount:
 (a) the gain company cannot deduct the consideration; and
 (b) the gain company does not make a *capital loss because of giving the consideration.
Note: However, the consideration may affect how section 170‑225 modifies the cost base of direct and indirect interests in the gain company.

Conditions for transfer

170‑130  Companies must be in existence and members of the same wholly‑owned group etc.
 (1) Both companies must be in existence during at least part of each of the following income years:
 (a) the capital loss year; and
 (b) the application year; and
 (c) any intervening income year.
Note: In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170‑132 and 170‑133.
 (2) Also, both companies must be members of the same *wholly‑owned group at all times during those income years when both companies were in existence.
Note: In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170‑132 and 170‑133.
 (3) One of the companies must be an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936) of a *foreign bank.
Note: The Australian branch can be taken to be a separate entity from the foreign bank for this Subdivision. See Part IIIB of the Income Tax Assessment Act 1936.
 (4) The other company must be covered by an item of this table.

The other company
Item               The other company must:                        At this time: