Section 139: Unused part of the surrenderable amounts
522.This section defines “unused part of the surrenderable amounts” for the purpose of section 138. It is based onsections 403A and 403B of ICTA.
523.Subsection (1) introduces the rules for calculating the “unused part of the surrenderable amounts”. In particular, the rules cater for the cases where:
the surrendering company and the claimant company have different accounting periods; or
there are multiple claims for the surrendering company’s losses etc.
524.Subsection (2) sets out the restriction to be made if the surrendering company and claimant company have different accounting periods. In that case the “surrender period” (see section 99(7)) and “claim period” (see section 130(2)) are not the same. The loss etc is apportioned on a time basis to the “overlapping period” (see section 142).
525.Subsection (3) introduces the calculation that has to be made if there are multiple claims for the surrendering company’s loss etc. It considers what “prior claims” have been made and what “prior surrenders” have been made as a result.
526.Subsection (4) defines a “prior claim”.
527.Subsection (5) is a method statement for calculating the total amount of any “prior claims”. The overlapping period for any prior claim is given by section 142.
528.If no part of that overlapping period falls within the claim period of the current claim, that prior claim is ignored. But if part of theoverlapping period does fall within the claim period of the current claim a time-apportioned amount of the prior claim is taken into account.
529.The total of the amounts to be taken into account for prior claims is deducted to arrive at the usable amount of the surrenderable amounts.
