Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 9/35)
Character Range: 3234022–3236612

of direct and indirect debt interest held by group companies in the loss company; and
                (c) the cost base and reduced cost base of direct and indirect debt interests held by group companies in the income company or gain company.

Table of sections

Operative provisions
170‑205 Object of Subdivision
170‑210 Transfer of tax loss: direct and indirect interests in the loss company
170‑215 Transfer of tax loss: direct and indirect interests in the income company
170‑220 Transfer of net capital loss: direct and indirect interests in the loss company
170‑225 Transfer of net capital loss: direct and indirect interests in the gain company

Operative provisions

170‑205  Object of Subdivision

Interests in the loss company
 (1) The main object of this Subdivision is to ensure that, if an amount of a *tax loss or *net capital loss is transferred by a company to another company in the same *wholly‑owned group, the loss transferred is not duplicated by a member of the group.
 (2) Duplication could occur by the making of a *capital loss, or the reduction of a *capital gain, from a *CGT event that happens in relation to an equity interest held (directly or indirectly) in the loss company or by the making of a capital loss in relation to a debt interest held (directly or indirectly) in the loss company.

Interests in the income company or gain company
 (3) This Subdivision may also require an adjustment to the cost base and reduced cost base of an equity or debt interest held (directly or indirectly) by a group company in the income company or gain company.
 (4) This adjustment is to reflect an increase in the *market value of the interest because of the transfer of the loss if the increase is still reflected in the market value of the interest when a *CGT event happens in relation to the interest.

170‑210  Transfer of tax loss: direct and indirect interests in the loss company
 (1) If:
 (a) an amount of a *tax loss is transferred by a company to another company; and
 (b) Subdivision 170‑A applies in respect of the transfer; and
 (c) a company (the group company) holds a *share in the loss company or is owed a debt by the loss company in respect of a loan; and
 (d) the group company *acquired the share or debt on or after 20 September 1985; and
 (e) throughout the deduction year, the group company is a member of the same *wholly‑owned group as the loss company (disregarding a period when either was not in existence); and
 (f) a *CGT event happens in relation to the share or debt on or after the commencement of this section; and
 (g) the relevant