Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 417.70

  (1)   If:

  (a)   you choose to transfer to another entity:

  (i)   under section   417 - 50, an entitlement to deductions; or

  (ii)   under Subdivision   417 - D, an amount of a * tax loss for an income year; and

  (b)   you receive any consideration from the other entity for the entitlement to deductions or for the amount of the tax loss;

then:

  (c)   so much of the consideration as is given for the entitlement to deductions or for the amount of the tax loss is not included in your assessable income or your exempt income; and

  (d)   a * capital gain does not accrue to you because of the receipt of the consideration.

  (2)   If:

  (a)   you choose to transfer to another entity:

  (i)   under section   417 - 50, an entitlement to deductions; or

  (ii)   under Subdivision   417 - D, an amount of a * tax loss for an income year; and

  (b)   the other entity gives you any consideration for the entitlement to deductions or for the amount of the tax loss;

then:

  (c)   the other entity cannot deduct the amount or value of the consideration; and

  (d)   the other entity does not incur a * capital loss because of the giving of the consideration.