Guide to the loss recoupment rules

How are the rules for changeover times and alteration times modified?

Subdivision 166-CA modifies how the loss integrity measures apply to the following where a company is either a widely held company or an eligible Division 166 company at all times during an income year:

• a changeover time (subdivision 165-CC of the ITAA 1997)
• an alteration time (subdivision 165-CD of the ITAA 1997) .

There is no changeover time or alteration time in a particular income year if there is substantial continuity of ownership between the reference time and any test time in that income year, including the end of the income year. If no changeover time or alteration time has previously occurred, the reference time is the later of 11 November 1999 and the date the company came into existence.

If there is no substantial continuity of ownership at a test time, the changeover time or alteration time, as applicable, occurs at that test time.

For more information, refer to section 166-80 of Division 166.