INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3A - Net capital gain or net capital loss of company in respect of year of income in which ownership or control of the company changed  

When a company must work out its net capital gain or net capital loss under this Division  

SECTION 160ZND   ON A CHANGE OF CONTROL OF VOTING POWER IN THE COMPANY, UNLESS THE COMPANY CARRIES ON THE SAME BUSINESS  

160ZND(1)   [When applies to calculation]  

A company must calculate its net capital gain or net capital loss under this Division if, during the year of income, a person begins to control, or becomes able to control, the voting power in the company (whether directly, or indirectly through one or more interposed entities) for the purpose, or for the purposes including the purpose, of:

(a) getting some benefit or advantage in relation to how this Act applies; or

(b) getting such a benefit or advantage for someone else.

160ZND(2)   [Satisfying test for rest of year]  

However, the person's control of the voting power, or ability to control it, does not require the company to calculate its net capital gain or net capital loss under this Division if the company satisfies the same business test for the rest of the year of income (the same business test period ).

160ZND(3)   [Application]  

Apply the same business test to the business that the company carried on immediately before the time (the test time ) when the person began to control that voting power, or became able to control it.

Note:

For the same business test: see Division 3C.