Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 165.115K

Application

  (1)   This Subdivision applies if:

  (a)   an alteration time occurs in respect of a company; and

  (b)   the company is a * loss company at the alteration time; and

  (c)   one or more entities had relevant equity interests or relevant debt interests in the company immediately before the alteration time.

Note 1:   For alteration time , see sections   165 - 115L, 165 - 115M, 165 - 115N, 165 - 115P and 165 - 115Q.

Note 2:   For relevant equity interests and relevant debt interests , see sections   165 - 115X and 165 - 115Y.

Alteration time before commencement time to be disregarded

  (2)   An alteration time does not include a time before the commencement time.

Commencement time

  (3)   The commencement time for a company is:

  (a)   if the company was in existence at 1 pm (by legal time in the Australian Capital Territory) on 11   November 1999--that time; or

  (b)   if the company came into existence after that time--the time when it came into existence.

Certain alteration times to be disregarded

  (4)   If:

  (a)   a time (the test time ) would, apart from this subsection, be an alteration time in relation to a company; and

  (b)   the company does not have any losses of the kinds referred to in paragraphs 165 - 115R(3)(a), (b), (c) and (d) and 165 - 115S(3)(a) and (b); and

  (c)   the test time is not a changeover time in relation to the company under Subdivision   165 - CC; and

  (d)   if the test time were such a changeover time, it would be reasonable for the company to conclude that it would not have an unrealised net loss at that time under section   165 - 115E;

the test time is taken not to be an alteration time in relation to the company.

Application to CGT events other than disposals

  (5)   This Subdivision applies to a * CGT event (other than a * disposal) happening in relation to a CGT asset (for example, an interest in a company that is constituted by an equity or debt):

  (a)   in the same way as it applies to a disposal of a CGT asset; and

  (b)   as if the asset had been disposed of at the time when the CGT event happens.