Taxation Determination
TD 92/175
Income tax: capital gains: if a company seeks to carry forward a net capital loss but fails the continuing ownership test, can it rely on the same business test as set out in section 80E?
This version is no longer current. Please follow this link to view the current version. |
-
Please note that the PDF version is the authorised version of this ruling.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
FOI status:
may be releasedFOI number: I 1213496| This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. |
1. Yes. Subsection 160ZC(5) of the Income Tax Assessment Act 1936 provides, in effect, that a net capital loss is not taken into account for the calculation of a net capital gain or loss for the next succeeding year of income where, if it had been a loss on revenue account, the loss could not be taken into account "by reason of the operation of section 80A or 80DA".
2. The issue of whether the same business test under section 80E is available arises because subsection 160ZC(5) does not specifically mention that section.
3. The same business test is available as an alternative because section 80A and section 80DA are each expressed to be subject to the operation of section 80E. That is, if the same business test is satisfied, sections 80A and 80DA do not prevent the whole of the loss being taken into account.
Commissioner of Taxation
22 October 1992
Previously Draft TD 92/D153
References
ATO references:
NO APPE PARRA
Subject References:
net capital loss
continuing ownership test
same business test
Legislative References:
ITAA 160ZC(5)
ITAA 80A
ITAA 80DA
ITAA 80E
| Date: | Version: | Change: | |
| You are here | 22 October 1992 | Original ruling | |
| 9 June 1999 | Withdrawn |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
