Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The Commissioner may * disallow a * capital loss of a company for an income year to the extent that the company would not have made the loss if it had not also made some or all of a * capital gain it made in that income year.
Note: The disallowance may result in a tax loss for the income year: see section 175 - 75.
(2) The Commissioner cannot * disallow any of the * capital loss if:
(a) the * continuing shareholders will benefit from any profit or advantage that has arisen or might arise directly or indirectly from the loss being made; and
(b) the Commissioner thinks that the extent to which they will benefit is fair and reasonable having regard to their respective * shareholding interests in the company.
Note: Section 175 - 100 allows the Commissioner to disallow a capital loss of an insolvent company.
(3) The continuing shareholders are the individuals who had * shareholding interests in the company both immediately before the * capital loss was made, and immediately afterwards.