Commonwealth Numbered Acts

FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 No. 97 of 1993 - SECT 26

26. If:

   (a)  this Act applies to one or more transfers by the transferring
        corporation to the receiving corporation; and

   (b)  the transferring corporation is taken (otherwise than because of
        section 80G of the Income Tax Assessment Act 1936) to have incurred a
        loss in a year
of income (the "loss year") for the purposes of section 79E, 79F, 80, 80AAA or
80AA of that Act; and

   (c)  the loss year is the year of income in which this section commenced or
        an earlier year of income; and

   (d)  section 80A or 80DA, or both, of that Act prevent a deduction from
        being allowable under that Act to the transferring corporation for a
        year of income
(the "deduction year") in respect of that loss; and

   (e)  the transferring corporation did not, at any time in the
        deduction year, derive income from:

        (i)    a business of a kind that it did not carry on; or

        (ii)   a transaction of a kind that it had not entered into in the
               course of its business operations; before the transfer, or the
               earliest of the transfers, occurred; sections 80A and 80DA of
               the Income Tax Assessment Act 1936 do not prevent a deduction
               from being allowable to the transferring corporation in respect
               of that loss.