Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 165.70

  (1)   The company's tax loss for the income year is calculated as follows.

  (2)   Total the * notional losses worked out under section   165 - 50 or 165 - 75.

  (3)   Add to the total in subsection   (2) the amount (if any) by which the company's * full year deductions of these kinds:

  (a)   deductions for bad debts under section   8 - 1 (about general deductions) or section   25 - 35 (about bad debts);

  (c)   deductions, so far as they are allowable under Division   8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division   3 of Part   III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;

exceed the total of:

  (d)   the * notional taxable incomes (if any); and

To work out the notional taxable income: see section   165 - 50.

  (e)   the * full year amounts referred to in section   165 - 60 (if any); and

  (f)   any * net capital gain of the company for the income year.

  (4)   If the company * derived exempt income, subtract its * net exempt income (worked out under section   36 - 20).

  (5)   Any amount remaining is the company's tax loss for the income year, which is called a loss year .

Note:   The meanings of tax loss and loss year are modified by section   36 - 55 for a corporate tax entity that has an amount of excess franking offsets.

To find out how much of the tax loss can be deducted in later income years: see Subdivision   165 - A.
To find out how to deduct it: see section   36 - 17.