Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1992No. 98, 1992 - SECT 17

17. Section 160ZC of the Principal Act is amended by adding at the end the
following subsections:

"(6) If:

   (a)  at some time during the last day of a year of income, a company is not
        a PDF; and

   (b)  the company was a PDF throughout the last day of the previous year of
        income ('the final PDF year'); a net capital loss that the company is
        taken to have incurred in respect of the final PDF year is to be
        disregarded in ascertaining whether a net capital gain accrued to the
        company, or the company incurred a net capital loss, in the
        first-mentioned year.

"(7) However, subsection (6) does not apply to so much of the net capital loss
as does not exceed the amount (if any) by which the total of:

   (a)  if the company is taken to have incurred a net capital loss in respect
        of the last year of income before the year of income at the start of
        which, or during which, it became a PDF - that net capital loss; and

   (b)  if the company incurred a capital loss or capital losses after that
        last year of income and before it became a PDF - that capital loss or
        those capital losses; exceeds:

   (c)  if a capital gain or capital gains accrued to the company after that
        last year of income and before the year of income referred to in
        paragraph (6)(a) - that capital gain or the total of those capital
        gains; or

   (d)  otherwise - a nil amount.".