08 Jul 09 Partnerships: utilisation of carried forward foreign losses - administrative treatment
Partnerships are currently unable to utilise foreign losses carried forward from prior years.
The government introduced into Parliament on 25 June 2009 legislation comprising a series of minor technical amendments and corrections to tax laws. The legislation is contained in Schedule 5 to the Tax Laws Amendment (2009 Measures No 4) Bill 2009, and proposes, among other things, to:
- allow for convertible foreign losses to be deducted in calculating the partnership’s net income or loss under section 90 of ITAA 1936
- clarify that 'taxable Australian real property' includes a lease over land
- ensure donations made to deductible gift recipients through salary sacrifice arrangements do not result in an employer incurring a liability to FBT.
The ATO says that it will apply the existing law in the period between the announcement and enactment of the proposed law but will not undertake specific compliance activity to enforce the existing law during the period between the announcement and enactment of the proposed law.
For a copy of the ATO advice, go here