Document ID: chunk:federal_register_of_legislation:C2025C00014:section:426
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 426
Character Range: 2028804–2029390

426  Creation of loss
  For the purposes of this Subdivision, if:
 (a) the amount of the eligible CFC's notional allowable deductions (other than under section 431) for a statutory accounting period (being the eligible period or an earlier period) are applied as follows:
 (i) they are applied first against any notional assessable income of the eligible CFC class for the period;
 (ii) any excess is then applied against any (sometimes‑exempt income) gain for the period; and
 (b) there is any amount remaining;
then the amount remaining is a loss of the eligible CFC for the period.