Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p1
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 1/9)
Character Range: 684836–687837

3                              The third income year ending after the initial transfer time, or a later income year  The difference between:
                                                                                                                     (a) the total of the amounts of the losses that were transferred to the transferee; and
                                                                                                                     (b) the total of the amounts of the losses utilised for earlier income years ending after the initial transfer time

Subdivision 707‑C of Income Tax Assessment Act 1997 disapplied
 (4) Subdivision 707‑C of the Income Tax Assessment Act 1997 operates as if the losses had been made by the transferee without being transferred under Subdivision 707‑A of that Act.
Note: This has 2 effects. First, Subdivision 707‑C of that Act does not limit utilisation of the losses. Secondly, it affects the limit that Subdivision sets on utilising other losses in any bundle (because that limit depends on the transferee's income and gains remaining after utilisation of losses that have not been transferred under Subdivision 707‑A of that Act).

Making choice
 (5) The transferee may choose that this section apply to the utilisation for any income year of all losses (of any sort) in the bundle that meet the conditions in paragraphs (1)(a), (b), (c) and (d). The transferee may do so only by the later of:
 (a) the day on which it lodges its income tax return for the first income year for which it could utilise any losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997 (as described in subsection (1) or otherwise); and
 (b) the end of 31 December 2005.
Note: For the purposes of paragraph (5)(a), ignore losses to which section 713‑535 (Losses of entities whose membership interests are virtual PST assets of life insurance companies) of the Income Tax Assessment Act 1997 applies. See section 707‑355 of this Act.

When choice has effect
 (6) The choice has effect for that income year and all later income years (and cannot be revoked after 31 December 2005).

Future transfer of the losses not affected
 (7) This section does not limit the transfer under Subdivision 707‑A of the Income Tax Assessment Act 1997 of any of the losses from the transferee to another company.

707‑355  Ignore certain losses in working out when a choice can be made under this Subdivision
  In working out when a choice may be made under subsection 707‑325(5), 707‑327(5), 707‑328A(4) or 707‑350(5), ignore losses to which section 713‑535 of the Income Tax Assessment Act 1997 applies.
Note: That section deals with losses transferred under Subdivision 707‑A of that Act from certain wholly‑owned subsidiaries of life insurance companies that are members of a consolidated group.

Subdivision 707‑D—Special rules about losses

Table of sections
707‑405 Special rules about losses referable to part of income year

707‑405  Special