Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 31/45)
Character Range: 5986229–5989036

correct the errors, and that (except as mentioned in subsection (2)) no offences or administrative penalties arise in respect of the errors.
 (2) Subsection (1) does not apply for the purposes of determining whether there is an offence against section 8N of the Taxation Administration Act 1953, or an administrative penalty under section 284‑75 or 284‑145 in Schedule 1 to that Act, in relation to statements made before the Commissioner became aware of the errors.
Note 1: Section 8N of the Taxation Administration Act 1953 deals with false or misleading statements. Sections 284‑75 and 284‑145 in Schedule 1 to that Act set out the circumstances in which an entity is liable for an administrative penalty.
Note 2: The offence and administrative penalty provisions however apply on a modified basis—see subsection 8W(1C) of the Taxation Administration Act 1953, and subsections 284‑80(2) and 284‑150(2) in Schedule 1 to that Act.

Division 707—Losses for head companies when entities become members etc.

Table of Subdivisions
707‑A Transfer of losses to head company
707‑B Can a transferred loss be utilised?
707‑C Amount of transferred losses that can be utilised
707‑D Special rules about losses

Subdivision 707‑A—Transfer of losses to head company

Guide to Subdivision 707‑A

707‑100  What this Subdivision is about
      A loss made by an entity before the time it becomes a member of a consolidated group is transferred to the head company of the group at that time if the entity could have utilised the loss had the entity not become a member of the group.

Table of sections
707‑105 Who can utilise the loss?

Objects
707‑110 Objects of this Subdivision

Application
707‑115 What losses this Subdivision applies to

Transfer of loss from joining entity to head company
707‑120 Transfer of loss from joining entity to head company
707‑125 Modified business continuity test for companies' post‑1999 losses
707‑130 Modified pattern of distributions test
707‑135 Transferring loss transferred to joining entity because business continuity test was satisfied

Effect of transfer of loss
707‑140 Effect of transfer of loss

Cancelling the transfer of the loss
707‑145 Cancelling the transfer of the loss

What happens if the loss is not transferred?
707‑150 Loss cannot be utilised for income year ending after the joining time

707‑105  Who can utilise the loss?
 (1) If the loss is transferred, the head company is treated for income years ending after the transfer as having made the loss, so the head company can utilise the loss for those income years to the extent permitted by:
 (a) the general rules (outside this Part) about an entity utilising a loss it has made; and
 (b) the special rules about transferred losses in the other Subdivisions of this Division that supplement and modify those