Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p30
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 30/31)
Character Range: 681545–684084

value at a time before 8 December 2004
  Disregard an event that is described in subsection 707‑325(4) of the Income Tax Assessment Act 1997 and occurred on or before 8 December 2000 in working out under section 707‑325 of that Act the modified market value of an entity at the time it becomes a member of a consolidated group on a day before 8 December 2004.

707‑350  Alternative loss utilisation regime to Subdivision 707‑C of the Income Tax Assessment Act 1997
 (1) This section affects the way in which one or more losses of one particular sort in a bundle of losses transferred under Subdivision 707‑A of the Income Tax Assessment Act 1997 before 1 July 2004 can be utilised by the transferee if:
 (a) they were actually made (disregarding that Subdivision) by a company (the real loss‑maker) for an income year ending on or before 21 September 1999; and
 (b) they were transferred at the time (the initial transfer time) the transferee became the head company of a consolidated group; and
 (c) they were transferred to the transferee from the real loss‑maker because:
 (i) the real loss‑maker met the conditions in section 165‑12 of that Act; and
 (ii) the conditions in one or more of paragraphs 165‑15(1)(a), (b) and (c) did not exist in relation to the real loss‑maker; and
 (d) none of them had been transferred under that Subdivision before the initial transfer time; and
 (da) the real loss‑maker has not been, at any time before the initial transfer time, a transitional foreign loss maker prevented by subsection 701D‑10(1) from being a subsidiary member of a consolidated group; and
 (e) the transferee has made a choice under subsection (5).

Losses to be utilised only after non‑transferred losses
 (2) The transferee may utilise for an income year the losses only after utilising for the year losses (the non‑transferred losses) of the same sort that the transferee made without a transfer under Subdivision 707‑A of the Income Tax Assessment Act 1997 (even if the income year for which the transferee made the losses is earlier than an income year for which the transferee made any of the non‑transferred losses).

Further limit on utilising the losses
 (3) The amount of the losses that the transferee may utilise for an income year cannot exceed the amount worked out for the year using the table.

Limit on utilising the losses
Item                           For this income year:                                                                 The amount of the losses that the transferee may utilise cannot exceed: