Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 195.15

(1) This section applies if a company becomes a *PDF during an income year and
is still a PDF at the end of it.

(2) Divide the income year into periods as follows:

   (a)  the non-PDF period is the period beginning at the start of the income
        year and ending when the company becomes a *PDF;

   (b)  the PDF period is the rest of the income year.

(3) For each period, work out whether the company has a taxable income or a
*tax loss (or both), treating each period as if it were an income year.

(4) If the company has:

   (a)  a taxable income for the non-PDF period; and

   (b)  a *tax loss for the PDF period; that tax loss is a tax loss of the
        company for the income year. Note: The company can only deduct the tax
        loss while it is a PDF: see section 195-5.

(5) If the company has a *tax loss for the non-PDF period:

   (a)  section 195-5 does not prevent the company from deducting its tax loss
        for the income year in a later income year; and

   (b)  section 195-10 does not prevent the company from transferring an
        amount of the tax loss under Subdivision 170-A (which is about the
        transfer of tax losses within wholly-owned groups of companies); to
        the extent that the tax loss does not exceed the tax loss for the
        non-PDF period.

(6) These rules apply in addition to the other rules about how *tax losses are
applied or transferred. The other rules start in Division 36 (which is about
tax losses of earlier income years).