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-CD - Reductions after alterations in ownership or control of loss company  

Operative provisions

SECTION 165-115K   Application and interpretation  

Application

165-115K(1)  
This Subdivision applies if:


(a) an alteration time occurs in respect of a company; and


(b) the company is a *loss company at the alteration time; and


(c) one or more entities had relevant equity interests or relevant debt interests in the company immediately before the alteration time.

Note 1:

For alteration time , see sections 165-115L , 165-115M , 165-115N , 165-115P and 165-115Q .

Note 2:

For relevant equity interests and relevant debt interests , see sections 165-115X and 165-115Y .

Alteration time before commencement time to be disregarded

165-115K(2)  
An alteration time does not include a time before the commencement time. Commencement time

165-115K(3)  
The commencement time for a company is:


(a) if the company was in existence at 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999 - that time; or


(b) if the company came into existence after that time - the time when it came into existence. Certain alteration times to be disregarded

165-115K(4)  
If:


(a) a time (the test time ) would, apart from this subsection, be an alteration time in relation to a company; and


(b) the company does not have any losses of the kinds referred to in paragraphs 165-115R(3)(a) , (b), (c) and (d) and 165-115S(3)(a) and (b); and


(c) the test time is not a changeover time in relation to the company under Subdivision 165-CC ; and


(d) if the test time were such a changeover time, it would be reasonable for the company to conclude that it would not have an unrealised net loss at that time under section 165-115E ;

the test time is taken not to be an alteration time in relation to the company.

Application to CGT events other than disposals

165-115K(5)  
This Subdivision applies to a *CGT event (other than a *disposal) happening in relation to a CGT asset (for example, an interest in a company that is constituted by an equity or debt):


(a) in the same way as it applies to a disposal of a CGT asset; and


(b) as if the asset had been disposed of at the time when the CGT event happens.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.