Document ID: chunk:federal_register_of_legislation:C2018C00085:clause:6_2:p10
Version: federal_register_of_legislation:C2018C00085
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 10/13)
Character Range: 106549–109252

apply to the declaration.

418‑95  Effect on tax losses of creating exploration credits
 (1) If an entity creates any *exploration credits in respect of a *loss year, the amount of the entity's *tax loss for the loss year is reduced by the amount worked out as follows:
 (2) However, if the amount worked out under subsection (1) equals or exceeds what would (apart from this section) be the entity's *tax loss for the *loss year, that tax loss is taken to be nil.

Subdivision 418‑E—Issuing exploration credits

Table of sections
418‑110 Issuing exploration credits
418‑115 Restricting exploration credits to post 1 July 2014 shares
418‑120 Exploration credits to be issued on a proportionate basis
418‑125 Expiry of exploration credits
418‑130 Notifying the Commissioner of issuing or expiry of exploration credits

418‑110  Issuing exploration credits
 (1) An entity that has created *exploration credits for an income year may issue any of those exploration credits to *members of the entity, in respect of *shares that:
 (a) are*equity interests; and
 (b) are held by the members.
 (2) The *exploration credits are issued by giving each of the *members a statement in the *approved form.
 (3) The issuing of *exploration credits is of no effect unless:
 (a) the statements under subsection (2) are given to the *members on or before the first 30 June after the day on which the modulation factor in respect of the income year is declared under section 418‑90; and
 (b) the issuing of credits complies with section 418‑120.

418‑115  Restricting exploration credits to post 1 July 2014 shares
 (1) An entity may, before it has issued any *exploration credits for any income year, choose to restrict the issuing of exploration credits to issuing exploration credits in relation to *shares that:
 (a) are*equity interests; and
 (b) have come into existence on or after 1 July 2014.
 (2) A choice under this section is irrevocable.

418‑120  Exploration credits to be issued on a proportionate basis
 (1) An entity issuing *exploration credits for an income year must ensure that the total number of exploration credits issued to any *member of the entity for the year, expressed as a percentage of the total number of all exploration credits issued to the members of the entity for the year, is the same as:
 (a) if the entity has made a choice under section 418‑115—the total number of *shares in the entity that:
 (i) are *equity interests held by the member; and
 (ii) have come into existence on or after 1 July 2014;
  expressed as a percentage of the total number of the shares in the entity that:
 (iii) are equity interests held by any members of the entity; and
 (iv) have come into existence