Document ID: chunk:federal_register_of_legislation:C2014C00672:clause:5_2:p3
Version: federal_register_of_legislation:C2014C00672
Segment Type: clause
Provision Reference: sch 5 cl 2 (pt 3/5)
Character Range: 41511–44073

$5,000; and
(c) for the 2012‑13 income year—an income tax liability of $210,000.
 Redom chooses to carry back $405,000 of its tax loss for the 2013‑14 year to the 2011‑12 year and $495,000 of that loss to the 2012‑13 year.
 Redom's loss carry back tax offset for the 2013‑14 year is $268,500, worked out as follows:
(a) an offset component for the 2011‑12 income year of $120,000, calculated by starting with the $405,000 carried back, reducing that at step 2 by $5,000, and multiplying the result by 30%.
(b) an offset component for the 2012‑13 income year of $148,500, calculated by starting with the $495,000 carried back and multiplying the result by 30%.
 The sum of the 2 components is $268,500 (which is less than Redom's $280,000 franking account balance at the end of the 2013‑14 year). If that sum had exceeded that balance, the amount of the offset would have been limited under paragraph (1)(b) to that balance.

Income tax liability for earliest year already utilised
 (3) For the purposes of applying step 4 of the method statement in subsection (2) to work out the entity's *loss carry back tax offset component for the earliest year, disregard so much of the entity's *income tax liability for the earliest year as has previously been included (for the purpose of working out the entity's entitlement to a *loss carry back tax offset for the middle year) in a loss carry back tax offset component.

Foreign residents
 (4) Paragraph (1)(b) does not apply if the entity was a foreign resident (other than an *NZ franking company) for:
 (a) if the entity *carries back an amount to the earliest year—more than half of the earliest year; and
 (b) if the entity carries back an amount to the middle year—more than half of the middle year.

Subdivision 160‑C—Loss carry back choice

Table of sections
160‑20 Loss carry back choice
160‑25 Entity must have been a corporate tax entity during relevant years
160‑30 Transferred tax losses etc. not included
160‑35 Integrity rule—no loss carry back tax offset if scheme entered into

160‑20  Loss carry back choice
 (1) The entity may make a loss carry back choice for the *current year that specifies:
 (a) how much of the entity's *tax loss for the current year (if any) is to be carried back to the earliest year; and
 (b) how much of the entity's tax loss for the middle year (if any) is to be carried back to the earliest year; and
 (c) how much of the entity's tax loss for the current year (if any) is to be carried back to the middle year.
 (2) The choice must be made in the *approved form by:
 (a)