Income Tax Assessment Act 1997



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  


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

An alteration time does not include a time before the commencement time. Commencement time

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


(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

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.


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