Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 770.1

             (1)  Subject to subsection (4), the Income Tax Assessment Act 1936 (the 1936 Act ), the Income Tax Assessment Act 1997 (the 1997 Act ) and this Act operate for the purposes of the income years mentioned in subsection (3) as if an entity that has a convertible foreign loss for an earlier income year under section 770-5 had a tax loss for the earlier year equal to:

                     (a)  the amount (if any) that would have been the entity's tax loss for the earlier year under section 36-10, 165-70, 175-35 or 701-30 of the 1997 Act (about deducting past tax losses); plus

                     (b)  the amount of the entity's convertible foreign loss for the earlier year.

Note 1:       This is instead of an amount of tax loss worked out under section 36-10, 165-70, 175-35 or 701-30 of the 1997 Act.

Note 2:       This section does not affect the amount (if any) of an entity's taxable income for the year. An entity may be taken to have a tax loss for a year under this section, but also have a taxable income for the year.

Note 3:       This section has an expanded operation for consolidated groups: see section 770-90.

             (2)  The earlier year is taken for those purposes to be a loss year for the entity if the entity would not otherwise have a tax loss for that year.

             (3)  The income years are:

                     (a)  the first income year starting on or after the first 1 July that occurs after the day on which the Tax Laws Amendment (2007 Measures No. 4) Act 2007 receives the Royal Assent (the commencement year ); and

                     (b)  later income years.

             (4)  A reference in section 90 of the 1936 Act to deductions allowable under Division 36 of the 1997 Act does not include a reference to deductions in respect of the foreign loss component of the tax loss.

Note:          For foreign loss component , see section 770-25.