Revised rules for utilising tax losses carried forward
The amendments to the assessed loss provisions in section 20 of the Income Tax Act become effective for most companies for their financial years that begin on or after 1 April 2022. The effect of the amendments is to restrict the utilisation of assessed losses carried forward from prior years against current year taxable income. This article provides a brief overview of the changes and some examples to demonstrate the practical workings of the restrictions.
|
