Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-90
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CONSOLIDATED GROUPS
This section operates if the loss had been transferred to the joining entity (by a previous operation of this Subdivision) because the entity from which the loss was transferred carried on during a particular period:
(a) the same business as it carried on at a particular time; or
(b) if section 165-211 applies in relation to the loss - a business similar to the business it carried on at a particular time.
The loss is not transferred from the joining entity to the * head company of the joined group (despite section 707-120 ), unless the joining entity satisfies the *business continuity test for:
(a) the * trial year (the business continuity test period ); and
(b) the time (the test time ) just before the end of the income year in which the loss was transferred to the joining entity.
Division 707
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Losses for head companies when entities become members etc.
Subdivision 707-A
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Transfer of losses to head company
Transfer of loss from joining entity to head company
SECTION 707-135
Transferring loss transferred to joining entity because business continuity test was satisfied
707-135(1)
This section operates if the loss had been transferred to the joining entity (by a previous operation of this Subdivision) because the entity from which the loss was transferred carried on during a particular period:
(a) the same business as it carried on at a particular time; or
(b) if section 165-211 applies in relation to the loss - a business similar to the business it carried on at a particular time.
Note:
Section 165-211 enables an entity to satisfy the business continuity test by carrying on a similar business.
707-135(2)
The loss is not transferred from the joining entity to the * head company of the joined group (despite section 707-120 ), unless the joining entity satisfies the *business continuity test for:
(a) the * trial year (the business continuity test period ); and
(b) the time (the test time ) just before the end of the income year in which the loss was transferred to the joining entity.
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