Document ID: chunk:federal_register_of_legislation:C2004C01244:schedule:1:p4
Version: federal_register_of_legislation:C2004C01244
Segment Type: schedule
Provision Reference: sch 1 (pt 4/5)
Character Range: 103808–106271

and
 (c) be signed by the public officer of each company; and
 (d) be made on or before the day of lodgment of the *income company's *income tax return for the *transfer year, or within such further time as the Commissioner allows.

Note: The agreement will usually be made in the next income year after the one in which the tax loss is transferred.

170-55  Losses must be transferred in order they are incurred

 (1) If the *loss company has 2 or more *tax losses (other than *film losses) that it can transfer in the *transfer year, it can transfer them only in the order in which it incurred them.

 (2) If the *loss company has 2 or more *film losses that it can transfer in the *transfer year, it can transfer them only in the order in which it incurred them.

170-60  Income company cannot transfer transferred tax loss

  The *income company cannot transfer an amount of a *tax loss transferred to it, or any part of the amount.

Effect of agreement to transfer more than can be transferred

170-65  Agreement transfers as much as can be transferred

 (1) If the amount specified in an agreement exceeds the maximum amount that the *loss company can transfer to the *income company in the *transfer year, only that maximum amount is taken to have been transferred.

 (2) One reason why an agreement might specify more than can be transferred is that an assessment has been amended since the agreement.

170-70  Amendment of assessments

  The Commissioner may amend an assessment to disallow a deduction for a transferred amount of a *tax loss:
 (a) if the agreement to transfer the tax loss is ineffective because the *loss company did not actually incur the loss; or
 (b) to the extent that section 170-65 reduces the transferred amount of a tax loss because the loss company did not actually incur some of it.
The Commissioner may do so despite section 170 (Amendment of assessments) of the Income Tax Assessment Act 1936.

[Minister's second reading speech made in—
House of Representatives on 19 June 1996
Senate on 31 October 1996]

(61/96)

I HEREBY CERTIFY that the above is a fair print of the Income Tax (Consequential Amendments) Bill 1997 which originated in the House of Representatives as the Income Tax (Consequential Amendments) Bill 1996 and has been finally passed by the Senate and the House of Representatives.

Clerk of the House of Representatives

IN THE NAME OF HER MAJESTY, I assent to this Act.

Governor-General
1997