Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p23
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 23/31)
Character Range: 664606–667255

of the real loss‑maker at the initial transfer time the amount worked out using the formula:

Note: The amount worked out using the formula will be nil if the value donor's modified market value at the initial transfer time is nil. Even if the amount is nil, section 707‑327 may treat losses transferred by the value donor to the transferee as if they were included in the bundle of losses transferred by the real loss‑maker to the transferee.
 (4) In subsection (3):
total of real loss‑maker's Division 170 losses in bundle is the total of the amount of each loss:
 (a) that is covered by paragraphs (1)(d) and (e); and
 (b) in relation to which the requirements in subsection (2) are met.
total of real loss‑maker's non‑foreign losses in bundle is the total of the amount of each loss that is described in paragraph (1)(d).

Choice to work out available fraction using this section
 (5) The transferee may choose to use a fixed percentage (greater than 0% and not more than 100%) of the value donor's modified market value to work out the available fraction for the bundle. 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 utilises (except in accordance with section 707‑350) losses transferred to it under Subdivision 707‑A of the Income Tax Assessment Act 1997; 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.
 (6) The choice cannot be amended, or revoked, after 31 December 2005.

If this section applies more than once for the same value donor
 (7) If subsection (3) applies 2 or more times in relation to the same value donor but different real loss‑makers, the transferee cannot choose for those applications percentages of the value donor's modified market value at the initial transfer time that result in the total of the amounts worked out under those applications exceeding that value.

Increase in real loss‑maker's value reduces value donor's value
 (8) Work out the available fraction for a bundle of losses transferred under Subdivision 707‑A of the Income Tax Assessment Act 1997 from the value donor at the initial transfer time as if the 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