(1)
Subject to the provisions of this section, the assessable profits of a company for any accounting period shall be the amount of the adjusted profit of that period after the deduction of —
(a)
the amount of any loss incurred by that company during any previous accounting period ; and
(b)
in a case of a business restructuring, the amount of any loss which is allowed for deduction by the new company under section 191 of this Act in its trade or business during its first accounting period.
(2)
The loss referred to in subsection (1) of this section shall be deducted to the extent possible from the amount of the adjusted profits of the accounting period immediately succeeding the accounting period in which the loss was incurred, and in subsequent accounting periods, until the loss is fully recouped.
(3)
Subject to the approval of the Service, a company may, within five months after the end of an accounting period, or such further time as the Service may permit, elect in writing, that a deduction to be made under this section, or part of the deduction, be deferred to succeeding accounting periods.