Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/11)
Character Range: 3187921–3190585

3                  Not be a *member of a *consolidatable group    The end of the *deduction year or, if the company ceases to be in existence during the deduction year, just before the cessation

170‑32  Tax loss incurred by the loss company because of a transfer under Subdivision 707‑A

When the conditions in this section apply
 (1) The conditions in this section apply instead of the conditions in subsections 170‑30(1) and (2) if:
 (a) the *income company is an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936) of a *foreign bank; and
 (b) the *loss company incurred the *tax loss because of one or more transfers of the tax loss under Subdivision 707‑A.

Conditions
 (2) Each transferor (prior transferor) of the *tax loss under Subdivision 707‑A must have been a company.
 (3) It must have been possible to meet the conditions in subsections 170‑30(1) and (2) in relation to the *loss company and the *income company assuming:
 (a) the *loss year were so much of the income year in which the *tax loss was transferred to the loss company under Subdivision 707‑A as occurred after the transfer; and
 (b) so much (if any) of the *deduction year as occurred before the transfer were disregarded.
 (4) The *income company and each prior transferor must both be in existence during at least part of each of these periods:
 (a) the period consisting of:
 (i) if the prior transferor incurred the *tax loss apart from Subdivision 707‑A—the *loss year; or
 (ii) if the prior transferor incurred the tax loss because of a transfer under Subdivision 707‑A (other than a transfer from the prior transferor to itself)—so much of the income year in which the transfer occurred as was after the transfer (but before any later transfer of the loss from the prior transferor under that Subdivision);
 (b) so much of the income year during which the tax loss was transferred under Subdivision 707‑A from the prior transferor to another company as occurs before the transfer (but after the start of the period described in paragraph (a));
 (c) any intervening income year.
 (5) The *income company must be a member of the same *wholly‑owned group as each prior transferor during the whole or part of the periods described in subsection (4) for the prior transferor when both were in existence.

170‑33  Alternative test of relations between the loss company and other companies
 (1) The conditions in subsections 170‑30(1) and (2) are taken to be met in relation to the *loss company and the *income company if:
 (a) the loss company is an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936) of a *foreign bank;