Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 770.95

                   Where a tax loss having a foreign loss component is transferred under Subdivision 707-A of the 1997 Act to a head company:

                     (a)  the tax loss has the same amount of foreign loss component after the transfer as it had immediately before the transfer; and

                     (b)  the starting total for the loss parcel to which the tax loss belongs (see section 770-20) is the same after the transfer as it was immediately before the transfer.

Note:          This section ensures a tax loss retains its foreign loss component and starting total even though the head company is taken, after the transfer, to have made the loss for the income year in which the transfer occurs.