Section IC 1 — Income Tax Act 2007: Company A making tax loss available to company B

IC 1 Company A making tax loss available to company B When this subpart applies (1) This subpart applies if 1 company that is part of a group of companies ( company A ) has a tax loss for a tax year that it makes available to another group company ( company B ) to subtract from its net income for the tax year. Requirements for grouping tax losses (2) The amount of a tax loss that company A has for a tax year may be made available to company B to subtract from its net income for the tax year only if— (a) the threshold levels in section IC 2 are met; and (b) the companies meet all the requirements of section IC 5 . Losing continuity or commonality in tax year (3) If company A or company B fail to meet 1 or both of the threshold levels referred to in subsection (2)(a), a tax loss may not be grouped unless section IP 4 or IP 5 (which relate to the grouping of part-year losses) applies. References to years (4) In this subpart, a reference to a tax year of a company includes a reference to a non-standard accounting year of the company that corresponds with the tax year. Relationship with sections IA 3 and IA 4 (5) This section overrides sections IA 3 and IA 4 (which relate to the general use of tax losses). Defined in this Act: amount , company , group of companies , net income , non-standard accounting year , tax loss , tax year , Compare: 2004 No 35 ss IG 1(1), (3) , IG 2(1), (2)(c), (e)