Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 7/10)
Character Range: 792292–796238

go bankrupt, or you are released from debts under a bankruptcy law: your right to deduct tax losses of an earlier income year may be affected.  Subdivision 36‑B

Tax losses of companies

Item  For the special rules about this situation ...                                                                                                                                                                                   See:
1.    A company has had a change of ownership or control during the income year, and has not satisfied the business continuity test: it works out its taxable income and its tax loss in a special way.                                Subdivision 165‑B
2.    A company wants to deduct a tax loss. It cannot do so unless:                                                                                                                                                                    Subdivision 165‑A
      • the same people owned the company during the loss year, the income year and any intervening year; and
      • no person controlled the company's voting power at any time during the income year who did not also control it during the whole of the loss year and any intervening year;
      or the company has satisfied the business continuity test.
3.    One or more of these things happen:                                                                                                                                                                                              Division 175
      • income is injected into a company;
      • a tax benefit is obtained from available losses or deductions;
      • a deduction is injected into a company;
      • a tax benefit is obtained because of available income.
      The Commissioner can disallow tax losses or current year deductions.
4.    A company can transfer a surplus amount of its tax loss to another company so that the other company can deduct the amount in the income year of the transfer. (Both companies must be members of the same wholly‑owned group.)  Subdivision 170‑A
      See also: Tax losses of pooled development funds (PDFs) below
5.    A life insurance company                                                                                                                                                                                                         Subdivision 320‑D
6.    A company is a designated infrastructure project entity.                                                                                                                                                                         Subdivision 415‑B

Tax losses of corporate tax entities

Item  For the special rules about this situation...                                                                                         See:
1.    A corporate tax entity that has an amount of excess franking offsets for an income year: it works out its tax loss in a special way.  Subdivision 36‑C
      See also Division 160 (loss carry back tax offset for 2020‑21, 2021‑22 or 2022‑23 for businesses with turnover under $5 billion)

Tax losses of entities generally

Item  For the special rules about this situation ...                                                                                                                                                                                     See:
3.    You have deductions in relation to deriving income under section 26AG of the Income Tax Assessment Act 1936 from the proceeds of a film: your tax loss may have a film component, which is deductible from your film income only.  Former Subdivision 375‑G

Tax losses of pooled development funds (PDFs)

Item  For the special rules about this situation ...                                                                                 See:
1.    A company is a pooled development fund (PDF) at the end of an income year for which it has a tax loss: it can