INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-E - The same business test  

SECTION 165-210   The test  

165-210(1)  


A company satisfies the same business test if throughout the *same business test period it carries on the same *business as it carried on immediately before the *test time.

165-210(2)  
However, the company does not satisfy the *same business test if, at any time during the *same business test period, it *derives assessable income from:


(a) a *business of a kind that it did not carry on before the *test time; or


(b) a transaction of a kind that it had not entered into in the course of its business operations before the *test time.

165-210(3)  
The company also does not satisfy the *same business test if, before the *test time, it:


(a) started to carry on a *business it had not previously carried on; or


(b) in the course of its business operations, entered into a transaction of a kind that it had not previously entered into;

and did so for the purpose, or for purposes including the purpose, of being taken to have carried on throughout the *same business test period the same business as it carried on immediately before the test time.

165-210(4)  


So far as the *same business test is applied for the purpose of Subdivision 165-B (which is about working out the taxable income and *tax loss for the income year of change of ownership or control), the company also does not satisfy the test if, at any time during the *same business test period, it incurs expenditure:


(a) in carrying on a *business of a kind that it did not carry on before the *test time; or


(b) as a result of a transaction of a kind that it had not entered into in the course of its business operations before the test time.


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