Document ID: chunk:federal_register_of_legislation:C2010C00578:clause:8_11:p2
Version: federal_register_of_legislation:C2010C00578
Segment Type: clause
Provision Reference: sch 8 cl 11 (pt 2/2)
Character Range: 93195–94643

equal to that positive amount (instead of an amount of tax loss worked out under section 36‑10, 165‑70, 175‑35 or 701‑30); and
 (d) that year is taken to be a *loss year for the entity if the entity would not otherwise have a tax loss for that year.

      Method statement
           Step 1. Work out the amount (if any) that would have been the entity's *tax loss for that year under section 36‑10, 165‑70, 175‑35 or 701‑30 if the entity's *net exempt income for that year (if any) were disregarded.
                  Note: See section 36‑20 for the calculation of net exempt income.
           Step 2. Divide the amount of *excess franking offsets by the *corporate tax rate.
           Step 3. Add the results of steps 1 and 2.
           Step 4. Reduce the result of step 3 by the entity's *net exempt income for that year (if any).
            The result of this step is taken to be the entity's *tax loss for that year. However, if the result of this step is nil or a negative amount, the company does not have any tax loss for that year.
Example: Assume that company E did not derive any exempt income for the 2002‑2003 income year and that it would not otherwise have any tax loss for that year under section 36‑10, 165‑70, 175‑35 or 701‑30.

 Applying the method statement, the amount of excess franking offsets of $30 generates a tax loss of $100 for that year, which can be deducted in a later income year under section 36‑15 or 36‑17.