INCOME TAX ASSESSMENT ACT 1997 - SECT 170.35 The loss company

INCOME TAX ASSESSMENT ACT 1997 - SECT 170.35

  (1)   The * loss company:

  (a)   must be an Australian resident and not a * prescribed dual resident; and

  (b)   must not be a * dual resident investment company in either the * loss year or the * deduction year.

  (2)   If the * loss year and the * deduction year are the same, it must be the case that the * loss company was not required to calculate the * tax loss:

  (a)   under section   165 - 70 (because of a change in ownership or control); or

  (b)   under section   175 - 35 (because of injected income or deductions).

  (3)   Also, it must be the case that neither Subdivision   165 - A nor Subdivision   175 - A would have prevented the * loss company from deducting the * tax loss in the * deduction year if it had had enough assessable income (including * assessable film income) to offset the tax loss.

Note 1:   Subdivision   165 - A deals with the deductibility of a company's tax loss for an earlier income year if there has been a change in the ownership or control of the company in the loss year or the income year. Subdivision   175 - A is about the Commissioner preventing a company from getting certain tax benefits through its unused tax losses.

Note 2:   Division   707 affects the operation of Subdivision   165 - A if the loss company incurred the tax loss because of a transfer under Subdivision   707 - A.