Section IE 4 — Income Tax Act 2007: Group companies’ treatment of tax losses on amalgamation

IE 4 Group companies’ treatment of tax losses on amalgamation When this section applies (1) This section applies on an amalgamation if a company that is part of a group of companies— (a) meets the requirements of section IA 5 (Restrictions on companies’ loss balances carried forward); and (b) has a tax loss for part of a tax year before the date of amalgamation; and (c) may use the tax loss under section IC 5 , IQ 4 , or IQ 5 (which relate to a company’s use of another company’s loss, including foreign losses). Use by amalgamated company (2) The amount of the tax loss may be subtracted from the net income of the amalgamated company for the tax year only if both the company and the amalgamated company, and each company that before or during the amalgamation amalgamated with the amalgamated company, meet the requirements of subparts IA , IC , and IQ (which relate to the general loss rules and certain foreign losses) that allow companies to group tax losses. Defined in this Act: amalgamated company , amalgamation , amount , company , group of companies , net income , tax loss , tax year , Compare: 2004 No 35 s IG 9