New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)

Schedule 6   Changes in ownership or control of company

Income Tax Assessment Act 1997

2   Section 165-12

Repeal the section, substitute:

165-12 Company must maintain the same owners

Ownership test period

(1) In determining whether section 165-10 prevents a company from deducting a *tax loss, the ownership test period is the period from the start of the *loss year to the end of the income year.

Voting power

(2) There must be persons who had *more than 50% of the voting power in the company at all times during the *ownership test period.

Note: See section 165-150 to work out who had rights to more than 50% of the voting power.

Rights to dividends

(3) There must be persons who had rights to *more than 50% of the company's dividends at all times during the *ownership test period.

Note: See section 165-155 to work out who had rights to more than 50% of the company's dividends.

Rights to capital distributions

(4) There must be persons who had rights to *more than 50% of the company's capital distributions at all times during the *ownership test period.

Note: See section 165-160 to work out who had rights to more than 50% of the company's capital distributions.

When to apply the primary test

(5) To work out whether a condition in this section was satisfied at all times during the *ownership test period, apply the primary test for that condition unless subsection (6) requires the alternative test to be applied.

Note: For the primary test, see subsections 165-150(1), 165-155(1) and 165-160(1).

When to apply the alternative test

(6) Apply the alternative test for that condition if one or more other companies beneficially owned *shares or interests in shares in the company at the beginning of the *ownership test period.

Note: For the alternative test, see subsections 165-150(2), 165-155(2) and 165-160(2).