Document ID: chunk:federal_register_of_legislation:C2019A00059:clause:1_1:p6
Version: federal_register_of_legislation:C2019A00059
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 6/10)
Character Range: 15468–18221

loss
417‑75 Membership interests affected by transfer of entitlement to deductions or tax loss

417‑65  CGT events not created by Timor Sea Maritime Boundaries Treaty entering into force
  If:
 (a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you owned an intangible *CGT asset connected with undertaking *transitioned petroleum activities; and
 (b) your ownership of the asset ended when that treaty entered into force; and
 (c) the ending of your ownership occurred in connection with the entry into force of that treaty;
the ending of your ownership is not a *CGT event.

417‑70  Tax treatment of consideration for transferred entitlement to deductions or tax loss
 (1) If:
 (a) you choose to transfer to another entity:
 (i) under section 417‑50, an entitlement to deductions; or
 (ii) under Subdivision 417‑D, an amount of a *tax loss for an income year; and
 (b) you receive any consideration from the other entity for the entitlement to deductions or for the amount of the tax loss;
then:
 (c) so much of the consideration as is given for the entitlement to deductions or for the amount of the tax loss is not included in your assessable income or your exempt income; and
 (d) a *capital gain does not accrue to you because of the receipt of the consideration.
 (2) If:
 (a) you choose to transfer to another entity:
 (i) under section 417‑50, an entitlement to deductions; or
 (ii) under Subdivision 417‑D, an amount of a *tax loss for an income year; and
 (b) the other entity gives you any consideration for the entitlement to deductions or for the amount of the tax loss;
then:
 (c) the other entity cannot deduct the amount or value of the consideration; and
 (d) the other entity does not incur a *capital loss because of the giving of the consideration.

417‑75  Membership interests affected by transfer of entitlement to deductions or tax loss
  If:
 (a) an entity chooses to transfer:
 (i) under section 417‑50, an entitlement to deductions; or
 (ii) under Subdivision 417‑D, an amount of a *tax loss for an income year; and
 (b) another entity *holds, either directly or indirectly, a *membership interest in that entity:
disregard a *capital loss from a *CGT event that arises in relation to the membership interest after the transfer takes effect, except to the extent that the entity can demonstrate that the loss is attributable to a matter other than the transfer.

Subdivision 417‑D—Transferring or applying tax losses

Table of sections
417‑90 Tax losses from transitioned petroleum activities
417‑95 How choices are made
417‑100 The effect of choosing to transfer losses
417‑105 The effect of choosing to apply losses to earlier income years
417‑110 Continuity of ownership and business continuity tests