Income Tax Assessment Act 1997



Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-A - Deducting tax losses of earlier income years  

Operative provisions

SECTION 165-13   Alternatively, the company must satisfy the business continuity test  


This section sets out the condition that a company must meet to be able to deduct the *tax loss if:

(a) the company fails to meet a condition in subsection 165-12(2) , (3) or (4); or

(b) it is not practicable to show that the company meets the conditions in those subsections.


Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165-12(2), (3) and (4) .


The company must satisfy the *business continuity test for the income year (the business continuity test period ). Apply the test to the *business the company carried on immediately before the time (the test time ) shown in the relevant item of the table.

Test time
Item If: The test time is:
1 It is practicable to show there is a period that meets these conditions:

(a) the period starts at the start of the *ownership test period or, if the company came into being during the *loss year, at the time the company came into being;

(b) the company would meet the conditions in subsections 165-12(2), (3) and (4) if the period were the ownership test period for the purposes of this Act
The latest time that it is practicable to show is in the period
2 Item 1 does not apply and the company was in being throughout the *loss year The start of the loss year
3 Item 1 does not apply and the company came into being during the *loss year The end of the loss year

For the business continuity test: see Subdivision 165-E .


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