Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p37
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 37/45)
Character Range: 6000763–6003401

loss for the income year in which the transfer occurs; and
 (b) the joining entity had not made the loss for the income year for which the joining entity actually made the loss.
 (1A) However, subsection (1) does not affect the operation of paragraph 165‑211(1)(a) or (c).
Note: This subsection ensures that the head company can only apply the version of the business continuity test in section 165‑211 if the loss of the joining entity was incurred on or after 1 July 2015.

Head company may utilise loss for income year of transfer
 (2) The *head company is not prevented from *utilising the loss for the income year in which the transfer occurs merely because this Act operates as if the head company had made the loss (to the extent of the transfer) for that year.

Debt forgiveness in income year for which loss is made
 (3) If a debt of the *head company of the joined group is *forgiven in the income year in which the transfer occurs, sections 245‑115 and 245‑130 operate as if the head company had made the loss for an earlier income year.
Note: This subsection has the effect that the loss may be reduced in accordance with one of those subsections by applying the total net forgiven amount for the income year in which the transfer occurs.

Cancelling the transfer of the loss

707‑145  Cancelling the transfer of the loss
 (1) The *head company of the joined group may choose to cancel the transfer of the loss.
 (2) If the *head company of the joined group does so, this Act (except this section) operates for all income years ending after the transfer as 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