Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 820.59

  (1)   This section applies if an entity is a company or a trust.

  (2)   This section   applies for the purposes of applying a * FRT disallowed amount of the entity for an income year (the disallowance year ) under paragraph   820 - 56(2)(b), in order to work out the amount of a deduction from its assessable income for another income year (the deduction year ) under subsection   820 - 56(1).

  (3)   Despite section   820 - 57, treat the * FRT disallowed amount for the disallowance year as being zero unless:

  (a)   if the entity is a company--subsection   (4) applies; or

  (b)   if the entity is a trust--subsection   (5) applies.

Rules for companies

  (4)   This subsection applies if, assuming that:

  (a)   the * FRT disallowed amount were a * tax loss; and

  (b)   the disallowance year were the * loss year; and

  (c)   the following provisions were disregarded:

  (i)   subsection   165 - 115B(3);

  (ii)   subsection   165 - 115BA(5);

  (iii)   section   415 - 35;

Divisions   165, 166 and 167 would not prevent the company from deducting the entire amount of that tax loss in the deduction year.

Rules for trusts

  (5)   This subsection applies if, assuming that:

  (a)   the * FRT disallowed amount were a tax loss (within the meaning of Schedule   2F to the Income Tax Assessment Act 1936 ); and

  (b)   the disallowance year were a loss year (within the meaning of that Schedule);

that Schedule would not prevent the entity from deducting the entire amount of that tax loss in the deduction year.