Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p25
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 25/31)
Character Range: 669431–672050

the value donor mentioned in section 707‑325 of this Act.
 (4) The other condition is that the event was a transaction:
 (a) that did not take place at arm's length; and
 (b) that involved only the real loss‑maker and the value donor mentioned in section 707‑325 of this Act; and
 (c) that would have caused subsection 707‑325(2) of the Income Tax Assessment Act 1997 to operate in working out the real loss‑maker's modified market value (even if no other events described in subsection 707‑325(4) of that Act had occurred), apart from this section.
 (5) Subsection (2) of this section does not apply if subsection 707‑325(2) of the Income Tax Assessment Act 1997:
 (a) operates for the purposes of working out the value donor's modified market value because of an event that involved an entity other than the value donor and the real loss‑maker (whether or not the event also involved either the value donor or the real loss‑maker); or
 (b) would operate for those purposes because of such an event apart from another application of this section.

707‑327  Choosing available fraction to apply to value donor's loss

Conditions for choosing available fraction for value donor's loss
 (1) This section has effect for the purposes of working out under Subdivision 707‑C of the Income Tax Assessment Act 1997 how much of a tax loss, film loss or net capital loss can be utilised if:
 (a) the available fraction for a bundle of other losses is worked out, because of section 707‑325, as if there were added to the modified market value of the real loss‑maker of the other losses an amount worked out under that section by reference to the value donor's modified market value; and
 (b) the loss was transferred under Subdivision 707‑A of that Act at the initial transfer time from the value donor; and
 (c) the loss is not a loss whose utilisation is affected by section 707‑350 (about utilisation of certain losses originally made for an income year ending on or before 21 September 1999); and
 (d) each company covered by subsection (2) would have been able to transfer the loss under Subdivision 707‑A of that Act at the initial transfer time had the company:
 (i) made the loss for the income year for which the value donor made it; and
 (ii) not utilised it; and
 (e) the requirement in subsection (3) is met.
Note: This section has effect even if the amount added to the real loss‑maker's modified market value under section 707‑325 is nil because the value donor's modified market value is nil.
 (2) This subsection covers:
 (a) the real loss‑maker; and
 (b) each other company (if any) for which it is the case that