Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The loss exposure amount of a partner in a * foreign hybrid for an income year is worked out as follows:
Method statement
Step 1. Work out the sum of the amounts or * market values of the contributions made by the partner to the * foreign hybrid that, as at the end of the income year:
(a) have not been repaid or returned to the partner; and
(b) have been contributed for at least 180 days, or are intended by the partner to remain contributed for at least 180 days.
Step 2. Subtract the sum of the amounts of:
(a) all * limited recourse debts owed by the partner at the end of the income year, to the extent that the * borrowings concerned were for the purpose of enabling the partner to make contributions to the * foreign hybrid and the debts were secured by the partner's interest in the foreign hybrid; and
(b) all the partner's * foreign hybrid revenue loss amounts in respect of the foreign hybrid for previous income years, after any reduction under subsection 830 - 45(2); and
(c) all the partner's * foreign hybrid net capital loss amounts in relation to the partnership for previous income years, after any reduction under subsection 830 - 45(2); and
(d) all deductions allowed to the partner under subsection 830 - 50(2) or (3) in respect of the foreign hybrid for previous income years; and
(e) all * capital losses that, as a result of subsection 830 - 50(2) or (3), the partner made in respect of * CGT event K12 in respect of the foreign hybrid for previous income years.
Contribution in case of foreign hybrid company
(2) For the purposes of step 1 in the method statement in subsection (1), if:
(a) the * foreign hybrid is a * foreign hybrid company; and
(b) the partner * acquired its * shares in the company from another shareholder; and
(c) the payment or other consideration for the acquisition of the shares did not constitute the making of a contribution by the partner to the foreign hybrid;
the payment or other consideration is taken:
(d) to be a contribution by the partner to the foreign hybrid; and
(e) to be so contributed for as long as the partner holds the shares; and
(f) to have been repaid to the partner to the extent of any payment that:
(i) the foreign hybrid makes to the partner in respect of the share; and
(ii) the foreign hybrid describes as a return of capital; and
(iii) is attributable to the period during which the partner has held the shares.