INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 415 - Designated infrastructure projects  

Subdivision 415-B - Tax losses and bad debts  

Change of ownership of trusts and companies

SECTION 415-35   Tax losses of companies  

Scope

415-35(1)  
This section applies to a * tax loss of a company if the company is a * designated infrastructure project entity at a time (the status time ) in the * loss year. Modifications of Divisions 165 and 166

415-35(2)  
Despite subsection 165-12(1) , 166-5(2) or 166-20(1) , the * ownership test period or * test period under that subsection starts at the earlier of:


(a) the first time:


(i) that occurs after the status time; and

(ii) at which the company is not a * designated infrastructure project entity; and


(b) the end of the income year referred to in that subsection as the income year.

415-35(3)  
In a case to which paragraph (2)(b) applies, the company is treated as meeting the conditions in section 165-12 .

415-35(4)  


Despite subsection 165-13(2) , 166-5(5) , 165-15(2) or 166-20(4) , the *business continuity test period under that subsection starts at the start of the * ownership test period or * test period (whichever is applicable) if, apart from this subsection, the business continuity test period would start earlier.

415-35(5)  
Despite subsection 165-13(2) , 165-15(3) , 166-5(6) or 166-20(4) , the * test time under that subsection occurs just after the start of the * ownership test period or * test period (whichever is applicable) if, apart from this subsection, the test time would occur earlier.

415-35(6)  
A reference in subsection 165-15(1) to the * loss year is treated as being a reference to the period:


(a) starting at the start of the * ownership test period; and


(b) ending at the end of the income year in which the ownership test period starts.

415-35(7)  
For the purposes of working out, under paragraph 165-45(3)(a) or (b) or subsection 165-45(4) , the end of the first period, disregard any part of the income year mentioned in section 165-45 during which the company is a * designated infrastructure project entity.

Note:

A company does not calculate its taxable income and tax loss under Subdivision 165-B if the company was a designated infrastructure project entity during the whole of the income year: see paragraph 165-35(c) .

Exceptions

415-35(8)  
Disregard this section for the purposes of Subdivisions 165-CA and 165-CB (about net capital losses) and 175-A and 175-CA (about tax benefits).


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