Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 170.270

  (1)   If, apart from this Subdivision:

  (a)   the originating company would have made a * capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision) as a result of the deferral event; or

  (b)   the originating company would have become entitled to a deduction in respect of the deferral event; or

  (c)   where the originating company is a partner in a partnership--the partnership would have become entitled to a deduction in respect of the deferral event;

the capital loss, the deduction or the partner's share of the deduction, as the case may be, is disregarded.

  (2)   To avoid doubt, the amount of the * capital loss, deduction, or partnership deduction, referred to in this section is:

  (a)   the amount remaining after applying Division   723 or section   727 - 615; or

  (b)   nil, if none of the amount remains after applying that section or Division.

Note:   Division   723 and section   727 - 615 reduce a loss realised for income tax purposes by a realisation event happening to a non - depreciating asset (in the case of Division   723) or an affected interest in a losing entity under an indirect value shift (in the case of section   727 - 615).