Document ID: chunk:federal_register_of_legislation:C2025C00014:section:431:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 431 (pt 1/2)
Character Range: 2030731–2033317

431  Deduction etc. for previous period loss
 (1) Where there are one or more losses of the eligible CFC of any statutory accounting period before the eligible period, the losses, to the extent they have not been previously taken into account under this section in respect of any such period, are to be taken into account in accordance with this section.
 (2) The losses are to be taken into account as follows:
 (a) they are to be applied first against any (sometimes‑exempt income) gain for the eligible period, to the extent that the gain has not already been applied under section 426 in determining whether there is a loss for the eligible period;
 (b) any excess is then a notional allowable deduction for the eligible period, but only to the extent that the deduction does not exceed the amount of the notional assessable income for the period as reduced by notional allowable deductions other than under this section;
 (c) where there are 2 or more losses, they are to be taken into account in the order in which they arose.
 (3) A loss for a statutory accounting period is only to be taken into account under subsection (2) if the eligible CFC was a CFC at the end of that statutory accounting period and each following statutory accounting period before the eligible period.
 (4) A loss for a statutory accounting period is to be taken into account under subsection (2) only if:
 (a) where the eligible CFC is a resident of a listed country at the end of the eligible period:
 (i) the eligible CFC is a resident of a listed country at the end of that statutory accounting period; and
 (ii) if there are any statutory accounting periods (the intervening periods) occurring between that statutory accounting period and the eligible period—the eligible CFC was a resident of a listed country at the end of each of the intervening periods; or
 (b) where the eligible CFC is a resident of an unlisted country at the end of the eligible period:
 (i) the eligible CFC is a resident of an unlisted country at the end of that statutory accounting period; and
 (ii) if there are any statutory accounting periods (also the intervening periods) occurring between that statutory accounting period and the eligible period—the eligible CFC was a resident of an unlisted country at the end of each of the intervening periods.
 (4A) If:
 (a) at the end of both the eligible period and of a prior statutory accounting period, the eligible CFC was a resident of the same country; and
 (b) the country was either:
 (i) a listed country at the end of the eligible period and an unlisted country at