INCOME TAX ASSESSMENT ACT 1997 - SECT 707.340 Utilising transferred losses while exempt income remains
INCOME TAX ASSESSMENT ACT 1997 - SECT 707.340
Utilising transferred losses while exempt income remainsTransferred film losses and net exempt film income
(a) the transferee of * film losses in a * bundle of losses has deducted from its * net exempt film income for an income year an amount of those losses that:
(i) is equal to the amount of * exempt film income worked out under subsection 707 - 310(3) for the transferee and the bundle; or
(ii) if section 707 - 335 affects the transferee's utilisation of losses in the bundle--is reasonable, having regard to that section; and
(b) the transferee still has net exempt film income for the year and film losses remaining in the bundle;
the fact the transferee still has net exempt film income does not stop it deducting film losses remaining in the bundle from its * net assessable film income for the year.
Transferred tax losses and net exempt income
(a) the transferee of * tax losses (other than * film losses) in a * bundle of losses has deducted from its * net exempt income for an income year an amount of its tax losses (other than film losses) in the bundle that:
(i) is equal to the amount of * exempt income worked out under subsection 707 - 310(3) for the transferee and the bundle; or
(ii) if section 707 - 335 affects the transferee's utilisation of losses in the bundle--is reasonable, having regard to that section; and
(b) the transferee still has net exempt income for the year and tax losses (other than film losses) remaining in the bundle;
the fact the transferee still has net exempt income does not stop it deducting tax losses (other than film losses) remaining in the bundle from its assessable income for the year.
(3) This section does not allow the deduction for an income year
of an amount of losses in a * bundle so as to exceed the limit set by section
707 - 310 or 707 - 335 on * utilisation for the year of losses of that
* sort in the bundle.