Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If an amount of a * tax loss is transferred, the amount is taken to be a tax loss incurred by the * income company in the * loss year.
(2) However, if the * loss year is the same as the income year of the transfer, the * income company is taken to have incurred the * tax loss in the income year before the loss year.
Note: This rule is needed because Division 36 allows a tax loss to be deducted only if it was incurred in an earlier income year.
(3) Despite subsection (1), if the * tax loss is transferred because the conditions in section 170 - 32 are met, the * income company is taken to have incurred the tax loss for the income year for which the first prior transferor mentioned in that section incurred the tax loss.
(4) Despite subsection (1), if the * tax loss is transferred because the condition in subsection 170 - 42(4) is met, the * income company is taken to have incurred the tax loss for the income year for which that subsection assumes the income company incurred the tax loss.