Breakthrough Development of Memory Ink in Capital Gains Tax Free ASX Company, page-6

if you make a capital loss or a trading loss, you cannot use/deduct the loss

both profits & losses are exempt are exempt from taxable income

SECTION 124ZM TREATMENT DISTRIBUTIONS TO SHAREHOLDERS IN PDF
If a company makes a distribution to a shareholder at a time when the company is a PDF, the unfranked part of the distribution is exempt from income tax.

Subject to subsection (7), the following is exempt income of the taxpayer

(a) if paragraph (3)(e) applies - the franked part;

(b) if paragraph (3)(f) applies - so much of the franked part of the distribution as flows indirectly to the taxpayer.

http://law.ato.gov.au/atolaw/print.htm?DocID=PAC/19360027/124ZM&PiT=99991231235958&Life=10010101000001-99991231235959

SECTION 124ZN
Income derived by a taxpayer from selling shares in a company is exempt from income tax if the company is a PDF at the time of the sale.

Any capital gain or capital loss from a disposal of shares in a PDF is disregarded: see section 118-13 of the Income Tax Assessment Act 1997.

http://law.ato.gov.au/atolaw/print.htm?DocID=PAC/19360027/124ZN&PiT=99991231235958&Life=10010101000001-99991231235959

SECTION 124ZO
Shares in a PDF are not trading stock for the purposes of this Act

http://law.ato.gov.au/atolaw/print.htm?DocID=PAC/19360027/124ZO&PiT=99991231235958&Life=10010101000001-99991231235959

DYOR
http://law.ato.gov.au/atolaw/result...&recStart=1&PiT=99991231235958&Archived=false