Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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 certain wholly - owned groups of companies); and
(c) section 195 - 37 does not prevent the company from * carrying back its tax loss for the purpose of working out the amount of the company's * loss carry back tax offset for the 2020 - 21, 2021 - 22 or 2022 - 23 income year;
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).