Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p24
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 24/31)
Character Range: 667009–669652

value donor's modified market value at the time were reduced by the amount worked out under subsection (3).

This section does not affect utilisation of overall foreign losses
 (9) This section has effect for working out the available fraction of a bundle of losses only so far as it affects the utilisation of a tax loss, film loss or net capital loss. It does not affect the utilisation of an overall foreign loss (as defined in former section 160AFD of the Income Tax Assessment Act 1936) included in a bundle of losses:
 (a) transferred from the real loss‑maker under Subdivision 707‑A of the Income Tax Assessment Act 1997; or
 (b) transferred from the value donor under that Subdivision.
Note: If a bundle of losses includes an overall foreign loss and a loss of another sort:
(a) utilisation of the overall foreign loss is limited by the available fraction for the bundle worked out apart from this section; and
(b) utilisation of the loss of the other sort is limited by the available fraction for the bundle as affected by this section, if applicable.

707‑326  Events involving only value donor and real loss‑maker not covered by rule against inflation of modified market value
 (1) This section affects the calculation of the modified market value of the real loss‑maker mentioned in subsection 707‑315(1) of the Income Tax Assessment Act 1997 for a bundle of losses. This section affects the calculation:
 (a) only if section 707‑325 of this Act applies for the purposes of working out the available fraction for the bundle; and
 (b) only for the purposes of working out the available fraction for the bundle to affect the utilisation of tax losses, film losses and net capital losses in the bundle (and not any overall foreign losses, as defined in former section 160AFD of the Income Tax Assessment Act 1936, in the bundle).
Note: This section does not affect the calculation of the real loss‑maker's modified market value for other purposes (such as the real loss‑maker being a value donor for the purposes of another application of section 707‑325 of this Act).
 (2) Disregard for the purposes of subsection 707‑325(2) of the Income Tax Assessment Act 1997 an event:
 (a) that is described in subsection 707‑325(4) of that Act; and
 (b) that meets the condition in subsection (3) or (4) of this section.
 (3) One condition is that the event was an injection of capital directly into the real loss‑maker by the value donor mentioned in section 707‑325 of this Act.
 (4) The other condition is that the event was a transaction:
 (a) that did not take place at arm's length; and
 (b) that involved only the real loss‑maker and the