Income Tax Assessment Act 1997



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

Subdivision 165-B - Working out the taxable income and tax loss for the income year of the change  

When a company must work out its taxable income and tax loss under this Subdivision

SECTION 165-35   165-35   On a change of ownership, unless the company satisfies the business continuity test  

A company must calculate its taxable income and *tax loss under this Subdivision unless:

(a) there are persons who had *more than a 50% stake in the company during the whole of the income year; or


See section 165-220 for a special alternative to the condition in this paragraph.

(b) there is only part of the income year (a part that started at the start of the income year) during which the same persons had *more than a 50% stake in the company, but the company satisfies the *business continuity test for the rest of the income year (the business continuity test period ); or

(c) the company was a * designated infrastructure project entity during the whole of the income year.


See subsection 415-35(7) if there is only part of the income year during which the company was a designated infrastructure project entity.

For the purposes of paragraph (b), apply the business continuity test to the *business that the company carried on immediately before the time (the test time ) when that part ended.

Note 1:

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

Note 2:

In the case of a widely held or eligible Division 166 company, Subdivision 166-B modifies how this Subdivision applies, unless the company chooses otherwise.


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