Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:2_2:p5
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 5/7)
Character Range: 260736–263462

choice for the purposes of subsection (4):
 (a) may be made only by the day on which the transferee 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) cannot be revoked.

Loss already in bundle with increased available fraction

 (6) Subsection (4) does not apply in relation to the loss if it was covered by paragraphs 707‑325(1)(d) and (e) and subsection 707‑325(2) in an application of section 707‑325 separate from the application of that section mentioned in paragraph (1)(a) of this section.

Note: This means that a loss that provided a basis for working out an increased available fraction for a bundle of losses under section 707‑325 cannot be treated under this section as if it were included in another bundle of losses.

707‑328  Income year and conditions for possible transfer under Division 170 of the Income Tax Assessment Act 1997

 (1) This section sets out the period and conditions referred to:
 (a) in subsections 707‑325(2) and 707‑327(3); and
 (b) in connection with the requirement that it must have been possible for a company (the notional transferor) to transfer to another company (the notional transferee) for an income year a loss under Subdivision 170‑A or 170‑B of the Income Tax Assessment Act 1997.

Period to be treated as income year for transfer

 (2) The period:
 (a) starts at the later of these times:
 (i) the start of the trial year;
 (ii) the start of the income year for which the loss was made; and
 (b) ends immediately after the initial transfer time mentioned in subsection 707‑320(1) of the Income Tax Assessment Act 1997.

Note: For the purposes of identifying the trial year using the definition in section 707‑120 of the Income Tax Assessment Act 1997, the notional transferor mentioned in this section is the same as the joining entity mentioned in that section, and the initial transfer time mentioned in this section is the same as the joining time mentioned in that section.

Conditions

 (3) The first condition is that neither the notional transferor nor the notional transferee became a subsidiary member of a consolidated group before, at or after the initial transfer time mentioned in the relevant subsection.

 (4) The second condition is that neither of those Subdivisions had been amended to provide only for transfers involving an Australian branch (as defined in section 160ZZV of the Income Tax Assessment Act 1936) of a foreign bank.

 (5) The third condition is that the notional transferee's income or gains for the income year were great enough not to prevent the transfer.

 (6) The