Section 98

(1) Subject to the provisions of this section, the assessable profits of
profits and a company for any accounting period shall be the amount of the adjusted profit
losses
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 190 of this Act in
its trade or business during its first accounting period.
(2) The loss referred to in subsection (1) 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.