Part I
Treatment of tax losses
Grouping tax losses
IC 1Company A making tax loss available to company B
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.
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—
- the threshold levels in section IC 2 are met; and
- the companies meet all the requirements of section IC 5.
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.
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.
This section overrides sections IA 3 and IA 4 (which relate to the general use of tax losses).
Compare
- 2004 No 35 ss IG 1(1), (3), IG 2(1), (2)(c), (e)