INCOME TAX ASSESSMENT ACT 1997 - SECT 170.125 Tax treatment of consideration for transferred tax loss

INCOME TAX ASSESSMENT ACT 1997 - SECT 170.125

  (1)   If the loss company receives consideration from the gain company for the transferred amount:

  (a)   the consideration is neither assessable income nor * exempt income of the loss company; and

  (b)   the loss company does not make a * capital gain because of receiving the consideration.

Note:   However, the consideration may affect how section   170 - 220 modifies the cost base of direct and indirect interests in the loss company.

  (2)   If the gain company gives consideration to the loss company for the transferred amount:

  (a)   the gain company cannot deduct the consideration; and

  (b)   the gain company does not make a * capital loss because of giving the consideration.

Note:   However, the consideration may affect how section   170 - 225 modifies the cost base of direct and indirect interests in the gain company.