Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p22
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 22/31)
Character Range: 662162–664834

(a) the transferee mentioned in that subsection chooses under subsection (5) of this section to work out the available fraction using a percentage of the modified market value of a company (the value donor) other than the real loss‑maker mentioned in subsection 707‑315(1) of that Act for the bundle; and
 (b) both the real loss‑maker and the value donor became members of the group mentioned in subsection 707‑315(1) of that Act in connection with the bundle at the time (which is the initial transfer time mentioned in that subsection in connection with the bundle) the group became a consolidated group; and
 (c) the initial transfer time is before 1 July 2004; and
 (ca) neither the real loss‑maker nor the value donor has 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
 (d) the bundle includes a loss that is not:
 (i) an overall foreign loss (as defined in former section 160AFD of the Income Tax Assessment Act 1936); or
 (ii) a loss whose utilisation is affected by section 707‑350 (about utilisation of certain losses originally made for an income year ending on or before 21 September 1999); and
 (e) the value donor would have been able to transfer the loss to the transferee under Subdivision 707‑A of the Income Tax Assessment Act 1997 at the initial transfer time had the value donor:
 (i) made the loss for the income year for which the real loss‑maker made it; and
 (ii) not utilised it; and
 (ea) neither of these sections applies in relation to the value donor as joining entity at the time the group became a consolidated group:
 (i) section 713‑535 (Losses of entities whose membership interests are virtual PST assets of life insurance company);
 (ii) section 713‑540 (Losses of entities whose membership interests are segregated exempt assets of life insurance company); and
 (f) the requirement in subsection (2) is met.
 (2) It must have been possible for the real loss‑maker to have transferred the loss to the value donor under Subdivision 170‑A or 170‑B of the Income Tax Assessment Act 1997 for an income year consisting of the period described in section 707‑328 had the conditions in that section existed.

Adding to the modified market value of the real loss‑maker
 (3) Work out the available fraction for the bundle of losses as if there were added to the modified market value 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