Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p40
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 40/45)
Character Range: 6007976–6010736

transferee can *utilise the loss for the income year because the latest transferee is a *widely held company or an *eligible Division 166 company, or both, during the year, subsection 166‑5(6) operates as if it required the *business continuity test to be applied to the *business the latest transferee carried on just before the time described in subsection (5) of this section.

If the test company made the loss because of a transfer
 (7) If the test company made the loss because of a transfer under Subdivision 707‑A from another entity, Divisions 165 and 166 operate in relation to the test company for the purposes of subsection (2) as if the test company's *loss year started at the time of the transfer.

Subdivision 707‑C—Amount of transferred losses that can be utilised

Guide to Subdivision 707‑C

707‑300  What this Subdivision is about

      Losses transferred to the head company of a consolidated group under Subdivision 707‑A can be utilised for an income year only against a fraction of the income or gains remaining after the company has utilised other losses and deductions.
                  Note: This Subdivision does not apply if the joining entity is a designated infrastructure project entity just before the transfer and the head company is a designated infrastructure project entity just after the transfer: see section 415‑45.

Table of sections

Object
707‑305 Object of this Subdivision

How much of a transferred loss can be utilised?
707‑310 How much of a transferred loss can be utilised?
707‑315 What is a bundle of losses?
707‑320 What is the available fraction for a bundle of losses?
707‑325 Modified market value of an entity becoming a member of a consolidated group
707‑330 Losses transferred from former head company
707‑335 Limit on utilising transferred losses if circumstances change during income year
707‑340 Utilising transferred losses while exempt income remains
707‑345 Other provisions are subject to this Subdivision

Object

707‑305  Object of this Subdivision
 (1) The main object of this Subdivision is to limit, in a way that gives effect to the principles in subsections (2) and (3), the amount of losses transferred under Subdivision 707‑A that can be *utilised for an income year by the transferee.
 (2) One principle is that the transferee is to *utilise the transferred losses for an income year only to the extent to which it has income or gains for the income year remaining after reduction by its other losses and deductions.
 (3) The other principle is that the amount of a transferred loss that the transferee can *utilise is to reflect the amount of the loss that the transferor could have *utilised for the income year if the transferor of the loss (whether the original maker of the loss