Taxation Laws Amendment Act (No. 5) 2003 (142 of 2003)
Schedule 7 Application of same business test
Part 1 Tax losses
Division 1 Main amendment
Income Tax Assessment Act 1997
1 Section 165-13
Repeal the section, substitute:
165-13 Alternatively, company must carry on same business
(1) This section sets out the condition that the company must meet to be able to deduct the *tax loss if:
(a) the company fails to meet a condition in subsection 165-12(2), (3) or (4); or
(b) it is not practicable to show that the company meets the conditions in those subsections.
Note: Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165-12(2), (3) and (4).
(2) The company must satisfy the *same business test for the income year (the same business test period ). Apply the test to the *business the company carried on immediately before the time (the test time ) shown in the relevant item of the table.
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Test time |
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Item |
If: |
The test time is: |
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1 |
It is practicable to show there is a period that meets these conditions: (a) the period starts at the start of the *ownership test period or, if the company came into being during the *loss year, at the time the company came into being; (b) the company would meet the conditions in subsections 165-12(2), (3) and (4) if the period were the ownership test period for the purposes of this Act |
The latest time that it is practicable to show is in the period |
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2 |
Item 1 does not apply and the company was in being throughout the *loss year |
The start of the loss year |
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3 |
Item 1 does not apply and the company came into being during the *loss year |
The end of the loss year |
For the same business test: see Subdivision 165-E.