Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 166.80

  (1)   This Subdivision modifies the way in which:

  (a)   Subdivision   165 - CC applies in determining whether a changeover time (within the meaning of section   165 - 115C) has occurred; or

  (b)   Subdivision   165 - CD applies in determining whether an alteration time (within the meaning of section   165 - 115L) has occurred;

in relation to a company that is:

  (c)   a * widely held company at all times during the income year; or

  (d)   an * eligible Division   166 company at all times during the income year; or

  (e)   a widely held company for a part of the income year and an eligible Division   166 company for the rest of the income year.

Note 1:   Subdivision   165 - CC is about the conditions a company that has an unrealised net loss must satisfy before it can have capital losses taken into account or deduct revenue losses. Subdivision   165 - CD provides for reductions in cost bases and certain other reductions after alterations have occurred in the ownership or control of a loss company.

Note 2:   A company can choose that this Subdivision is not to apply to it: see section   166 - 90.

Note 3:   See section   165 - 255 for the rule about incomplete income years.

Meaning of test period and test time

  (2)   The company's test period is the period starting at the time that is the reference time for the purposes of Subdivision   165 - CC or section   165 - 115L, as the case may be, and ending at each of the following times (the test time ):

  (a)   the end of the income year in which the reference time occurred;

  (b)   the end of a later income year;

  (c)   the * end of a * corporate change in the company.

Note 1:   See section   165 - 255 for the rule about incomplete test periods.

Note 2:   See section   166 - 175 to work out whether there is a corporate change.

Substantial continuity of ownership

  (3)   A changeover time or an alteration time is taken not to have occurred in respect of the company during the test period if there is * substantial continuity of ownership of the company as between the start of the * test period and the * test time.

Note:   See section   166 - 145 to work out whether there is substantial continuity of ownership.

No substantial continuity of ownership

  (4)   Subsections   (5) and (6) have effect if there is no * substantial continuity of ownership of the company as between the start of the * test period and the * test time.

  (5)   The * test time is taken to have been a changeover time or an alteration time, as the case may be, in respect of the company.

  (6)   No other time during the * test period is a changeover time or an alteration time in respect of the company.