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  

Working out the company's taxable income

SECTION 165-45   First, divide the income year into periods  

Divide the income year into periods as follows.

The first period starts at the start of the income year. Each later period starts immediately after the end of the previous period.

The last period ends at the end of the income year. Each period (except the last) ends at the earlier of:

(a) the latest time that would result in persons having *more than a 50% stake in the company during the whole of the period; or

(b) the earliest time when a person begins to control, or becomes able to control, the voting power in the company (whether directly, or indirectly through one or more interposed entities) for the purpose, or for purposes including the purpose, of:

(i) getting some benefit or advantage to do with how this Act applies; or

(ii) getting such a benefit or advantage for someone else.

See section 165-255 for the rule about incomplete periods.


However, what would otherwise be 2 or more successive periods are treated as a single period if the company satisfies the *business continuity test for all of them, considered as a single period (the business continuity test period ). Apply the business continuity test to the *business the company carried on immediately before the end of the first of the periods (the test time ).
Note 1:

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

Note 2:

See section 165-225 for a special alternative to subsections (3) and (4) of this section.


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