Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/11)
Character Range: 3202681–3205287

the *tax loss being transferred; and
 (c) be signed by the public officer of each company; and
 (d) be made on or before the day of lodgement of the *income company's *income tax return for the *deduction 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 for which the income company will deduct the loss.

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 *deduction 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 *deduction year, it can transfer them only in the order in which it incurred them.
 (3) If:
 (a) the *loss company has 2 or more *tax losses, or 2 or more *film losses, it can transfer for the *deduction year; and
 (b) it incurred at least one of those losses apart from Subdivision 707‑A and at least one of those losses because of a transfer under that Subdivision;
it can transfer under this Subdivision the losses it incurred because of a transfer under Subdivision 707‑A only after transferring under this Subdivision the losses it incurred apart from that Subdivision.
 (4) For the purposes of subsection (3), treat a loss incurred by the company both apart from that Subdivision and because of a transfer under that Subdivision as a loss incurred because of a transfer under that Subdivision.
 (5) Subsections (1) and (2) have effect subject to subsection (3).

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 *deduction 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