Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_18:p9
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 18 (pt 9/23)
Character Range: 42496–45030

at the alteration time is an income year and apply paragraphs (3)(a), (b), (c) and (d) on that assumption.

What is a loss company

 (3) The company is a loss company at the alteration time if:
 (a) at the beginning of the income year it had an undeducted *tax loss or undeducted tax losses for an earlier income year or earlier income years; or
 (b) at the beginning of the income year it had an unapplied *net capital loss or unapplied net capital losses for an earlier income year or earlier income years; or
 (c) it has a tax loss for the income year, calculated as if the income year were a period for the purposes of Subdivision 165‑B; or
 (d) it has a net capital loss for the income year, calculated as if the income year were a period for the purposes of Subdivision 165‑CB; or
 (e) it has an adjusted unrealised loss at the alteration time.

Note: For adjusted unrealised loss, see section 165‑115U.

How losses are to be calculated

 (4) In applying subsection (3):
 (a) an undeducted *tax loss or unapplied *net capital loss that was taken into account in working out under this section whether the company was a *loss company at an alteration time in a previous income year is to be disregarded; and
 (b) Subdivision 170‑D is to be disregarded.

Overall loss

 (5) The sum of:
 (a) the amount or amounts of any *tax loss or tax losses referred to in paragraph (3)(a); and
 (b) the amount or amounts of any *net capital loss or net capital losses referred to in paragraph (3)(b); and
 (c) the amount of any tax loss referred to in paragraph (3)(c); and
 (d) the amount of any net capital loss referred to in paragraph (3)(d); and
 (e) the amount of any adjusted unrealised loss referred to in paragraph (3)(e);
is the *loss company's overall loss at the alteration time.

Note: The loss company's overall loss is relevant for the purposes of subsections 165‑115ZB(3) and (6).

Certain losses to be disregarded

 (6) A reference in a paragraph of subsection (3) and in the corresponding paragraph of subsection (5) to a particular loss is a reference only to a loss to the extent to which it represents an outlay or loss of any of the economic resources of the company.

Note: Where the income tax law allows, as all or part of a loss, an amount for plant depreciation that exceeds the actual economic depreciation or depletion of the plant concerned, the excess is not to be regarded for the purposes of this subsection as representing an outlay or loss of economic resources of the company.

Amounts of losses may be