Commonwealth Consolidated Acts Commonwealth Consolidated ActsA company can transfer a surplus amount of its net capital loss to another company so that the other company can apply the amount in working out its net capital gain for the income year of the transfer. One of the companies must be an Australian branch of a foreign bank, and both companies must be members of the same wholly - owned group.
Table of sections
170 - 105 Basic principles for transferring a net capital loss
Effect of transferring a net capital loss
170 - 110 When a company can transfer a net capital loss
170 - 115 Who can apply transferred loss
170 - 120 Gain company is taken to have made transferred loss
170 - 125 Tax treatment of consideration for transferred tax loss
Conditions for transfer
170 - 130 Companies must be in existence and members of the same wholly - owned group etc.
170 - 132 Net capital loss made by the loss company because of a transfer under Subdivision 707 - A
170 - 133 Alternative test of relations between the loss company and other companies
170 - 135 The loss company
170 - 140 The gain company
170 - 142 If the gain company has become the head company of a consolidated group or MEC group
170 - 145 Maximum amount that can be transferred
170 - 150 Transfer by written agreement
170 - 155 Losses must be transferred in order they are made
170 - 160 Gain company cannot transfer transferred net capital loss
Effect of agreement to transfer more than can be transferred
170 - 165 Agreement transfers as much as can be transferred
170 - 170 Amendment of assessments
Australian permanent establishments of foreign financial entities
170 - 174 Treatment like Australian branches of foreign banks