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Legal database

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


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