Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005)

Schedule 10   Technical corrections and amendments

Part 1   Technical corrections and amendments commencing on Royal Assent

Income Tax Assessment Act 1997

132   Subsection 165-115ZC(3)

Repeal the subsection, substitute:

Foreign resident controlling entity to be disregarded in certain circumstances

(3) If:

(a) apart from this subsection, an entity that is a foreign resident would be a controlling entity of a *loss company; and

(b) there is an entity that is an Australian resident and would be a controlling entity of the loss company if all the foreign residents that held direct or indirect interests in the Australian resident were individuals;

then, for the purposes of this section, the entity referred to in paragraph (a) is taken not to be a controlling entity of the company but the Australian resident is taken to be a controlling entity of the company.