Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1992No. 98, 1992 - SECT 9

9. After section 79E of the Principal Act the following sections are inserted:
Loss of company's first year as a PDF where taxable income consists of pre-PDF
income

"79EA.(1) If a company has a taxable income for a year of income because of
paragraph (c) of the definition of 'taxable income' in subsection 6(1), this
section applies for the purposes of section 79E despite subsections 79E(1) and
(2).

"(2) The company incurs a loss in that year of income equal to the loss (if
any) that, if:

   (a)  the period beginning at the start of that year of income and ending
        immediately before the company became a PDF were a year of income of
        the company; and

   (b)  the period ('the PDF notional year') beginning when the company became
        a PDF and ending at the end of the first-mentioned year of income were
        a year of income of the company; the company would be taken because of
        section 79E to incur in the PDF notional year. Losses incurred while a
        PDF not allowable after company ceases to be a PDF

"79EB.(1) If a company is a PDF throughout the last day of a year of income in
which it incurs a loss, the loss is not allowable as a deduction from the
company's assessable income of a later year of income unless the company is a
PDF throughout the later year of income.

"(2) However, if:

   (a)  a company becomes a PDF during a year of income and is still a PDF at
        the end of the year of income; and

   (b)  the company incurs a loss in that year of income otherwise than
        because of section 79EA; subsection (1) of this section does not apply
        to so much of the loss as does not exceed the loss (if any) that, if
        the period ('the notional year') beginning at the start of the year of
        income and ending immediately before the company becomes a PDF were a
        year of income of the company, the company would be taken to incur in
        the notional year.

"(3) An expression has in this section the same meaning as in section 79E.".