Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If you choose under this Subdivision to transfer an amount of a * tax loss for an income year (the loss year ):
(a) the amount is taken to be a tax loss incurred by the transferee in the loss year; and
(b) the transferee can deduct the amount in accordance with section 36 - 17 (which is about how to deduct a tax loss); and
(c) at the time of the choice, a * franking credit arises in the * franking account of the transferee; and
(d) you can no longer * utilise the amount, and you are taken not to have incurred the tax loss to the extent of the amount.
(2) Despite paragraph (1)(a), if the loss year is the same as the income year of the transfer, the transferee 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) The amount of the * franking credit under paragraph (1)(c) is an amount equal to the amount of the * tax loss transferred multiplied by the standard corporate tax rate (within the meaning of Part IVA of the Income Tax Assessment Act 1936 ).
(4) Paragraph (1)(c) does not apply if you are not, and have never been, a * corporate tax entity.