Recently, Inland Revenue of Cyprus has published a circular (2013/8, 30.5.2013) clarifying the regulation on the carry forward of tax losses
. 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.
In sentencing Mehta's, the district court chose an offense level that corresponded to a tax loss of between $1 million and $2.5 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.
Previously, investors used straddles to create immediate deductible tax losses
without a current economic loss.
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.
The S&Ls claimed the exchanges nevertheless resulted in tax losses
used to generate tax refunds from carryback of the resulting net operating losses.