Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_4:p2
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 2/6)
Character Range: 44972–47617

the Income Tax Assessment Act 1936 (the 1936 Act)).

Note: Former section 160AFD of the 1936 Act allowed a past foreign loss to reduce assessable foreign income of the same class.

 (2) In applying section 770‑5, only have regard to the overall foreign loss if the income year in which it was actually incurred (disregarding subsection 707‑140(1) of the 1997 Act) was one of the most recent 10 income years ending before the commencement year.

Note: Section 770‑5 is about the amount of an entity's convertible foreign losses. Section 707‑140 deems the head company of a group to have made a transferred loss in the year in which it is transferred.

 (3) A reduction must be made under step 2 of the method statement in section 770‑10 if the overall foreign loss was actually incurred (disregarding subsection 707‑140(1) of that Act) in an income year other than the most recent 7 income years ending before the commencement year.

Note: Section 770‑10 is about reducing an entity's past foreign losses to arrive at the entity's convertible foreign loss for past years.

770‑85  Deduction limit not to restrict transfer of losses

  Section 770‑30 (deduction limit for foreign loss component) does not limit the transfer, under Subdivision 707‑A of the 1997 Act, of a tax loss that has a foreign loss component.

770‑90  Transfer of losses not restricted where part of trial year occurs before commencement year

  Section 770‑1 operates in relation to a trial year in the same way it operates in relation to the income years mentioned in subsection 770‑1(3) if:
 (a) a tax loss has a foreign loss component; and
 (b) it is necessary to determine whether an entity could utilise the tax loss for an income year consisting of the trial year; and
 (c) part of the trial year occurs before the start of the commencement year mentioned in subsection 770‑1(3).

770‑95  Foreign loss component and starting total retained after transfer to head company

  Where a tax loss having a foreign loss component is transferred under Subdivision 707‑A of the 1997 Act to a head company:
 (a) the tax loss has the same amount of foreign loss component after the transfer as it had immediately before the transfer; and
 (b) the starting total for the loss parcel to which the tax loss belongs (see section 770‑20) is the same after the transfer as it was immediately before the transfer; and
 (c) for the purposes of section 770‑30, the amount of the foreign loss component of one or more of the tax losses in the parcel that any entity has deducted for an income year is the same after the transfer as immediately before the transfer.

Note 1: This section