Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_4:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 7/8)
Character Range: 580354–582955

amount; and

 (f) the group company's direct or indirect interest in the loss company.

Note: Reductions under subsection 160ZP(13) of the Income Tax Assessment Act 1936 are also relevant: see section 170‑175 of the Income Tax (Transitional Provisions) Act 1997.

 (2) If:

 (a) an amount of a *net capital loss is transferred; and

 (b) a company (the group company) holds a *share in another company, or is owed a debt by it in respect of a loan; and

 (c) the group company *acquired the share or debt on or after 20 September 1985; and

 (d) the money the group company paid for the share, or the borrowed money, has been applied (directly, or indirectly through one or more interposed entities):

 (i) in the other company or a third company acquiring shares in the loss company; or

 (ii) in a *borrowing by the loss company from the other company or from a third company; and

 (e) throughout the application year, the group company, the other company and the third company (if any) are all members of the same *wholly‑owned group as the loss company (disregarding, for a particular company, a period when it was not *in existence);

the *cost base and *reduced cost base of the share or debt are reduced by an amount that is appropriate having regard to:

 (f) any consideration received by the loss company for the transferred amount; and

 (g) the group company's direct or indirect interest in the loss company.

170‑180  Direct and indirect interests in the gain company

 (1) If:

 (a) an amount of a *net capital loss is transferred; and

 (b) a company (the group company) holds a *share in the gain company or is owed a debt by it in respect of a loan; and

 (c) the group company *acquired the share or debt on or after 20 September 1985; and

 (d) throughout the application year, the group company is a member of the same *wholly‑owned group as the gain company (disregarding a period when either was not *in existence);

the *cost base and *reduced cost base of the share or debt are increased (see subsection (3)).

Note: Increases under subsections 160ZP(14) and (15) of the Income Tax Assessment Act 1936 are also relevant: see section 170‑180 of the Income Tax (Transitional Provisions) Act 1997.

 (2) If:

 (a) an amount of a *net capital loss is transferred; and

 (b) a company (the group company) holds a *share in another company, or is owed a debt by it in respect of a loan; and

 (c) the group company *acquired the share or debt on or after 20 September 1985; and

 (d) the money the group company paid for the share, or the borrowed money,