Miscellaneous 2011

Complexities of the loss carry-forward provisions

Source: The Tax Specialist Journal Article

Published Date: 1 Oct 2011


Australia has a policy of taxing company profits and losses asymmetrically: profits are taxed immediately, while losses must be carried forward and offset against future income. This policy is achieved via the loss carry-forward provisions. While these provisions have always been complex, recent amendments to the provisions and additions to other areas of tax law, such as consolidations, have resulted in increased criticism. In addition, economic instability has exacerbated pre-existing tensions between the varying stakeholders. Taxpayers' desire for clarity and the tax professional's desire for efficiency has conflicted with increased ATO scrutiny which is driven by government's need for revenue.

This article analyses the loss carry-forward provisions for evidence of complexity in order to evaluate whether these criticisms are indeed justified.


Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2011

Share this page