Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p14
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 14/20)
Character Range: 128684–131449

if it had not occurred under section 707‑120.

 (3) The choice cannot be revoked.

What happens if the loss is not transferred?

707‑150  Loss cannot be utilised for income year ending after the joining time

  To the extent that the loss is not transferred under section 707‑120 from the joining entity to the *head company of the joined group, the loss cannot be *utilised by any entity for an income year ending after the joining time.

Subdivision 707‑B—Can a transferred loss be utilised?

Guide to Subdivision 707‑B

707‑200  What this Subdivision is about

      This Subdivision modifies rules about a company maintaining the same ownership to be able to utilise a loss transferred to it under Subdivision 707‑A, and specifies what things happening before the transfer are to be taken into account in working out whether the company can utilise the loss.

Table of sections

Operative provisions

707‑205 Modified period for test for maintaining same ownership
707‑210 Utilisation of certain losses transferred from a company depends on company that made the losses earlier

[This is the end of the Guide.]

Operative provisions

707‑205  Modified period for test for maintaining same ownership

 (1) This section modifies Divisions 165 and 166 for the purposes of working out whether a company can *utilise a *tax loss or *net capital loss that it made because of a transfer under Subdivision 707‑A.

 (2) Subdivision 165‑A and Division 166 operate for those purposes as if the *loss year started at the time of the transfer.

Note 1: This means that the ownership test period defined by subsection 165‑12(1) and the test period defined by subsection 166‑5(1) start at the time of the transfer.

Note 2: Without this section, those periods would start at the start of the income year in which the transfer occurred, so events occurring before the transfer (such as changes in holdings of voting power, rights to dividends or rights to capital or abnormal trading) could affect whether the company could utilise the tax loss or net capital loss.

707‑210  Utilisation of certain losses transferred from a company depends on company that made the losses earlier

 (1) This section has effect for the purposes of working out whether a company (the latest transferee) can *utilise for an income year a loss transferred to it under Subdivision 707‑A from a company (the latest transferor) because:
 (a) the latest transferor met the condition in section 165‑12; and
 (b) the conditions in one or more of paragraphs 165‑15(1)(a), (b) and (c) did not exist in relation to the latest transferor.

Meeting conditions in section 165‑12

 (2) The latest transferee is taken to meet the conditions in section 165‑12 for the income year in relation to the loss