Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 8/35)
Character Range: 3231441–3234264

capital loss
  The gain company cannot transfer an amount of a *net capital loss transferred to it, or any part of the amount.

Effect of agreement to transfer more than can be transferred

170‑165  Agreement transfers as much as can be transferred
 (1) If the amount specified in an agreement exceeds the maximum amount that the loss company can transfer to the gain company in the application year, only that maximum amount is taken to have been transferred.
 (2) One reason why an agreement might specify more than can be transferred is that an assessment has been amended since the agreement.

170‑170  Amendment of assessments
  The Commissioner may amend an assessment to *disallow a transferred amount of a *net capital loss:
 (a) if the agreement to transfer the net capital loss is ineffective because the loss company did not actually make the loss; or
 (b) to the extent that section 170‑165 reduces the transferred amount because the loss company did not actually make some of it.
  The Commissioner may do so despite section 170 (Amendment of assessments) of the Income Tax Assessment Act 1936.
Note: This Subdivision is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936.

Australian permanent establishments of foreign financial entities

170‑174  Treatment like Australian branches of foreign banks
 (1) The object of this section is to let *net capital losses be transferred under this Subdivision to and from *Australian permanent establishments of *foreign entities that are *financial entities in the same way as net capital losses can be transferred to and from Australian branches of *foreign banks.
 (2) This Subdivision (except this section) applies to an *Australian permanent establishment of a *foreign entity that is a *financial entity in the same way as this Subdivision applies to an Australian branch (as defined in Part IIIB of the Income Tax Assessment Act 1936) of a *foreign bank.

Subdivision 170‑C—Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly‑owned groups of companies

Guide to Subdivision 170‑C

170‑201  What this Subdivision is about
      If a tax loss or a net capital loss is transferred between companies in the same wholly‑owned group, this Subdivision provides for adjustments to:

                (a) the cost base and reduced cost base of direct and indirect equity interests held by group companies in the loss company, or in the income company or gain company; and
                (b) the reduced cost base of direct and indirect debt interest held by group companies in the loss company; and
                (c) the cost base and reduced cost base of direct and indirect debt interests held by group companies in the income company or gain company.