Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

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

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

Guide to Subdivision 165-A

SECTION 165-5   What this Subdivision is about  

View history reference

A company cannot deduct a tax loss unless:

  • (a) it has the same owners and the same control throughout the period from the start of the loss year to the end of the income year; or
  • (b) it satisfies the business continuity test by carrying on the same business (including entering into no new kinds of transactions and conducting no new kinds of business), or by carrying on a similar business (on or after 1 July 2015).
    • Note:

    The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see section 415-35 .

     View history note


    TABLE OF SECTIONS
    TABLE OF SECTIONS
    Operative provisions
    165-10 To deduct a tax loss
    165-12 Company must maintain the same owners
    165-13 Alternatively, the company must satisfy the business continuity test
    165-15 The same people must control the voting power, or the company must satisfy the business continuity test
    165-20 When company can deduct part of a tax loss

     

    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.