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 according to subsection 195-15(2) (about working out the company's tax loss for the income year).
(3) For each period, work out whether the company has a * net capital gain or a * net capital loss (or both), treating each period as if it were an income year.
(4) If the company has:
(a) a * net capital gain for the non-PDF period; and
(b) a * net capital loss for the PDF period;
that loss is a net capital loss of the company for the income year.
Note: The company can only apply the loss while it is a PDF: see section 195- 25.
(5) If the company has a * net capital loss for the non-PDF period:
(a) section 195- 25 does not prevent the company from applying its * net capital loss for the income year in working out its * net capital gain for a later income year; and
(b) section 195-30 does not prevent the company from transferring an amount of its net capital loss for the income year under Subdivision 170-B (which is about the transfer of net capital losses within certain wholly-owned groups of companies);
to the extent that its net capital loss for the income year does not exceed its net capital loss for the non-PDF period.
(6) These rules apply in addition to the other rules about how * net capital losses are applied or transferred.
The other rules start in Division 102 (about net capital gains and losses).
Guide to Subdivision 195-B