Allowing the transfer of tax losses
among group companies would bring Hong Kong in line with other major international financial centres such as the United Kingdom, the United States and Singapore.
Companies and self employed individuals are restricted to and can now only bring forward tax losses
of the last five years, effective from the tax year starting 1st January 2012.
5 million, and the appeals court decided that it was reasonable to estimate that the total tax losses
would fall in that range.
Similarly, we urge the Standing Committee to recommend that a formal system be introduced to permit the sharing and utilization of tax losses
and other tax attributes among groups of related corporations.
By taking a large paper loss on a stock or a mutual fund right away, an investor can build up a "bank" of tax losses
that can be used to offset future gains.
The S&Ls claimed the exchanges nevertheless resulted in tax losses
used to generate tax refunds from carryback of the resulting net operating losses.
Even though the shareholders may anticipate positive cashflow, tax losses
may occur because of rapid depreciation deductions or other differences between book and tax reporting.
The introduction of a formal system for sharing tax losses
and other tax attributes among groups of related corporations would bring the Canadian tax system in line with that of most other developed countries in the world.
12] Hence, such a basis increase can be extremely valuable to shareholders of an S corporation holding a distressed property that generated significant tax losses
in tax years prior to the COD, which shareholders were unable to deduct for lack of stock basis.