Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_4:p1
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/6)
Character Range: 42227–45204

4                                                        The third income year ending after the commencement year   The difference between:
                                                                                                                    (a) 4/5 of the starting total for the loss parcel; and
                                                                                                                    (b) the amount of the foreign loss component of one or more tax losses in the loss parcel deducted for the income years mentioned in items 1, 2 and 3

Note: There may be a reduction of the limit for the head company of a consolidated group under section 770‑100.

 (2) This section does not limit the amount of the foreign loss component of a tax loss that an entity can deduct in a year later than the third income year ending after the commencement year.

Note: For later years, any remaining undeducted tax loss may be deducted to the extent permitted by the general rules for tax losses.

770‑35  Offset limit to take account of deducted foreign loss component

 (1) This section affects the calculation of your offset limit for an income year under section 770‑75 of the 1997 Act.

 (2) This section applies for an income year if you have deducted an amount of the foreign loss component of one or more tax losses (see section 770‑25) in the income year.

 (3) In working out the amount referred to in subparagraph 770‑75(2)(b)(ii) of the 1997 Act for the year, you must assume (in addition to the assumptions set out in subsection 770‑75(4) of that Act), that you were not entitled to any deductions covered by subsection (2).

Subdivision 770‑B—Transitional foreign losses (special rules for consolidated groups)

Table of sections

770‑80 Transferred losses taken not to be refreshed for purposes of converting overall foreign loss
770‑85 Deduction limit not to restrict transfer of losses
770‑90 Transfer of losses not restricted where part of trial year occurs before commencement year
770‑95 Foreign loss component and starting total retained after transfer to head company
770‑100 Limit where foreign loss component utilised by joining entity
770‑105 Modified operation of Subdivision 707‑C of the 1997 Act for foreign loss component
770‑110 Application of Subdivision to MEC groups

770‑80  Transferred losses taken not to be refreshed for purposes of converting overall foreign loss

 (1) This section applies if:
 (a) a loss is transferred under section 707‑120 of the Income Tax Assessment Act 1997 (the 1997 Act) from a joining entity to a head company; and
 (b) the loss is an overall foreign loss in respect of a class of assessable foreign income (within the meaning of former section 160AFD of the Income Tax Assessment Act 1936 (the 1936 Act)).

Note: Former section 160AFD of the 1936 Act allowed a past foreign loss to reduce assessable foreign income of the same class.

 (2) In applying section 770‑5, only have regard to