Loss attributing qualifying companies -section HA 11 (4)

Section HA 11(4) of the Income Tax Act 2007 has been repealed and its provisions relocated to new section HA 11B. Cross references in section HA 6(2)(c) have been updated.

As enacted in the 2007 Act, the location of section HA 11(4) was capable of being interpreted as not applying to a loss attributing qualifying company. That interpretation would have amounted to an unintended change in outcome when compared with its corresponding provision in the 2004 Act.

Section HG 18 of the 2004 Act provided that a loss attributing qualifying company that ceases to be a loss attributing qualifying company also ceases to be a qualifying company.

The relocation of the provisions of HA 11(4) into section HA 11(4B) ensures that the new provision correctly reflects the effect of section HG 18 of the 2004 Act.