Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 11/35)
Character Range: 3238683–3241177

debt; and
 (d) any consideration received by the loss company for the loss transferred; and
 (e) whether, because of a dividend or dividends paid by the loss company, the consideration is no longer reflected (wholly or partly) in the market value of the share or debt when a *CGT event happens in relation to it.
 (3A) To avoid doubt in applying paragraph (3)(c) in relation to a *share or debt, if factors other than the loss altered the *market value of the share or debt, the extent to which the loss reduced that market value is taken to be the extent to which that market value would have been reduced apart from those other factors.
Note: An example of a factor other than the loss is the unrealised value of assets (including assets in respect of which there is an unrealised gain) of the loss company, whether or not generated by outlays or economic losses reflected in the loss for income tax purposes.
 (3B) This section applies to a *tax loss only to the extent that the loss represents an outlay or loss of any of the economic resources of the *loss company.
Note: Where the income tax law allows, as all or part of a loss, an amount for the decline in value of a depreciating asset that exceeds the actual economic depreciation or depletion of the asset concerned, the excess is not to be regarded for the purposes of this subsection as representing an outlay or loss of economic resources of the company.
 (4) Any reduction is to be made immediately before a *CGT event happens in relation to the share or debt and is to have effect from that time or the end of the deduction year, whichever is the earlier.
Note 1: For deduction year see subsection 170‑20(1).
Note 2: Subsection (4) is relevant for indexing elements of a cost base (see sections 114‑1 and 114‑15).

170‑215  Transfer of tax loss: direct and indirect interests in the income company
 (1) If:
 (a) an amount of a *tax loss is transferred by a company to another company; and
 (b) Subdivision 170‑A applies in respect of the transfer; and
 (c) a company (the group company) holds a *share in the income company or is owed a debt by the income company in respect of a loan; and
 (d) the group company *acquired the share or debt on or after 20 September 1985; and
 (e) throughout the deduction year, the group company is a member of the same *wholly‑owned group as the income company (disregarding a period when either was not in existence); and
 (f) a *CGT event happens in relation to the share or debt on or after