Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 7/8)
Character Range: 3185005–3187496

but only for the income year of the income company for which the amount is transferred. That income year is called the deduction year.
 (2) The *loss company can no longer *utilise the transferred amount and is taken not to have incurred the *tax loss to the extent of that amount.

170‑25  Tax treatment of consideration for transferred tax loss
 (1) If the *loss company receives any consideration from the *income company for the amount of the *tax loss:
 (a) so much of the consideration as is given for the amount of the tax loss is neither assessable income nor exempt income of the loss company; and
 (b) a *capital gain does not accrue to the loss company because of the receipt of the consideration.
Note: However, the consideration may affect how section 170‑210 modifies the cost base of direct and indirect interests in the loss company.
 (2) If the *income company gives any consideration to the *loss company for the amount of the *tax loss:
 (a) the income company cannot deduct the amount or value of the consideration; and
 (b) the income company does not incur a *capital loss because of the giving of the consideration.
Note: However, the consideration may affect how section 170‑215 modifies the cost base of direct and indirect interests in the income company.

Conditions for transfer

170‑30  Companies must be in existence and members of the same wholly‑owned group etc.
 (1) Both companies must be in existence during at least part of each of the following income years:
 (a) the *loss year; and
 (b) the *deduction year; and
 (c) any intervening income year.
Note: In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170‑32 and 170‑33.
 (2) Also, both companies must be members of the same *wholly‑owned group during the whole or part of those income years when both companies were in existence.
Note: In some cases, this condition may not apply, or may be taken to be met even if it is not actually met. See sections 170‑32 and 170‑33.
 (3) One of the companies must be an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936) of a *foreign bank.
Note: The Australian branch can be taken to be a separate entity from the foreign bank for this Subdivision. See Part IIIB of the Income Tax Assessment Act 1936.
 (4) The other company must be covered by an item of this table.

The other company
Item               The other company must:                        At this time: