INCOME TAX ASSESSMENT ACT 1997 - SECT 170.25 Tax treatment of consideration for transferred tax loss

INCOME TAX ASSESSMENT ACT 1997 - SECT 170.25

  (1)   If the * loss company receives any consideration from the * income company for the amount of the * tax loss:

  (a)   so much of the consideration as is given for the amount of the tax loss is neither assessable income nor exempt income of the loss company; and

  (b)   a * capital gain does not accrue to the loss company because of the receipt of the consideration.

Note:   However, the consideration may affect how section   170 - 210 modifies the cost base of direct and indirect interests in the loss company.

  (2)   If the * income company gives any consideration to the * loss company for the amount of the * tax loss:

  (a)   the income company cannot deduct the amount or value of the consideration; and

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

Note:   However, the consideration may affect how section   170 - 215 modifies the cost base of direct and indirect interests in the income company.