Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_4:p5
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 5/6)
Character Range: 52110–54974

Assent (the commencement period); and
 (b) later statutory accounting periods.

770‑165  Convertible CFC loss

 (1) An eligible CFC has a loss to which this section applies (a convertible CFC loss) for an earlier statutory accounting period covered by subsection (2) if:
 (a) the eligible CFC has a loss under section 426 of the 1936 Act for the earlier period in relation to notional assessable income of a class, reduced to the extent that it has been previously taken into account under section 431 of the 1936 Act in respect of a statutory accounting period before the commencement period; and
 (b) a positive amount remains after reducing the loss under section 770‑170.

Note: For the classes of notional assessable income, see former subsection 424(1) of the 1936 Act.

 (2) The statutory accounting period must be one of the most recent 10 statutory accounting periods ending before the commencement period.

 (3) The amount of the convertible CFC loss for the earlier period is the sum of the positive amounts remaining after each loss in relation to notional assessable income of a class for the earlier period is reduced under section 770‑170.

770‑170  Reducing the amount of a CFC loss of a class of notional assessable income

  Apply the following method statement to each loss in relation to notional assessable income of a class for the earlier statutory accounting period.

      Method statement
           Step 1. Reduce the amount applicable under paragraph 770‑165(1)(a) to the extent (if any) that the loss relates to the "all other amounts" class of notional assessable income, except to the extent (if any) that the loss is attributable to losses or outgoings incurred in gaining or producing income of a kind that would be the company's notional assessable income or sometimes‑exempt income.
           Step 2. For statutory accounting periods other than the most recent 7 statutory accounting periods ending before the commencement period—reduce the result of step 1 by half.

Subdivision 770‑D—Transitional foreign income tax offsets (common rules)

Table of sections

770‑220 Converting excess foreign tax credits into pre‑commencement excess foreign income tax
770‑225 Pre‑commencement excess foreign income tax generated for a company by excess foreign tax credits relating to other income
770‑230 Increase in the foreign income tax offset

770‑220  Converting excess foreign tax credits into pre‑commencement excess foreign income tax

 (1) You have pre‑commencement excess foreign income tax from an income year if:
 (a) you have excess foreign tax credits in relation to a class of foreign income from an earlier income year under former section 160AFE of the Income Tax Assessment Act 1936 (the 1936 Act); and
 (b) the earlier income year is one of the most recent 5 income years ending before the first income year starting