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-CC - Change of ownership or control of company that has an unrealised net loss  

Guide to Subdivision 165-CC

SECTION 165-115AA   Special rules to save compliance costs  

165-115AA(1)  


A company is exempt from these rules if, at the time of the change in ownership or control, it (together with certain related entities) has a net asset value of not more than $6,000,000 under the test in section 152-15 (for small business CGT relief).

165-115AA(2)  


In working out whether it has an unrealised net loss, a company can choose to work out the market value of each of its assets individually, or of all of its assets together.

165-115AA(3)  


If a company works out the market value of each of its assets individually, it may choose to exclude every asset that it acquired for less than $10,000, in which case:


(a) unrealised losses and gains on the excluded assets will not be taken into account in calculating the company ' s unrealised net loss; and


(b) losses on the excluded assets will be allowed without the company being subject to the business continuity test.


TABLE OF SECTIONS
TABLE OF SECTIONS
Operative provisions
165-115A Application of Subdivision
165-115B What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time
165-115BA What happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock
165-115BB Order of application of assets: residual unrealised net loss
165-115C Changeover time - change in ownership of company
165-115D Changeover time - change in control of company
165-115E What is an unrealised net loss
165-115F Notional gains and losses


 

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