INCOME TAX ASSESSMENT ACT 1997
Even if a company meets the conditions in section 165-12 or 165-13 , it cannot deduct the *tax loss if:
(a) for some or all of the part of the *ownership test period that started at the end of the *loss year, a person controlled, or was able to control, the voting power in the company (whether directly, or indirectly through one or more interposed entities); and
(b) for some or all of the *loss year, that person did not control, and was not able to control, that voting power (directly, or indirectly in that way); and
(c) that person began to control, or became able to control, that voting power (directly, or indirectly in that way) for the purpose of:
(i) getting some benefit or advantage in relation to how this Act applies; or
or for purposes including that purpose.
(ii) getting such a benefit or advantage for someone else;
A person can still control the voting power in a company that is in liquidation etc.: see section 165-250 .
However, that person ' s control of the voting power, or ability to control it, does not prevent the company from deducting the *tax loss if the company satisfies the *business continuity test for the income year (the business continuity test period ).
Apply the *business continuity test to the *business that the company carried on immediately before the time (the test time ) when the person began to control that voting power, or became able to control it.
For the business continuity test: see Subdivision 165-E .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.