Income Tax Assessment Act 1997

Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 707 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Subdiv 707-B inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 707-210(1) and (1A) substituted for s 707-210(1) by No 16 of 2003, s 3 and Sch 13 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). S 707-210(1) formerly read:

707-210(1)
This section has effect for the purposes of working out whether a company (the latest transferee ) can ^* utilise for an income year a loss transferred to it under Subdivision 707-A from a company (the latest transferor ) because:

(a) the latest transferor met the condition in section 165-12 ; and

(b) the conditions in one or more of paragraphs 165-15(1)(a) , (b) and (c) did not exist in relation to the latest transferor.

S 707-210(1) and (1A) substituted for s 707-210(1) by No 16 of 2003, s 3 and Sch 13 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 707-210(3) amended by No 16 of 2003, s 3 and Sch 13 item 3, by substituting para (b), effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). Para (b) formerly read:

(b) one or more of those earlier transfers occurred because the company from which that earlier transfer was made satisfied the ^* same business test for the ^* same business test period and ^* test time specified in Division 165 or 166 or section 707-125 (as affected by section 707-205 or Subdivision 707-D if relevant);

S 707-210(4) amended by No 117 of 2002, s 3 and Sch 6 items 1 and 2, by substituting para (c) and omitting " a subsidiary member of that other group " after " time " in para (d)(ii), effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ). Para (c) formerly read:

(c) nothing happened, after the time the loss was transferred from the test company to the ^* head company of a ^* consolidated group, to ^* membership interests or voting power in an entity that was at that time a ^* subsidiary member of the group, that would affect whether the test company would meet the conditions in section 165-12 for the income year; and

S 707-210(5) amended by No 147 of 2005, s 3 and Sch 1 item 118, by substituting " subsection 166-5(6) " for " subsection 166-5(5) " in para (b), effective 14 December 2005. For application provision, see note under Div 166 heading.

S 707-210(6) amended by No 7 of 2019, s 3 and Sch 1 item 117, by substituting " *business continuity test " for " *same business test " , effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015.

S 707-210(6) amended by No 164 of 2007 , s 3 and Sch 6 item 47, by repealing the note, applicable to:

(a) any tax loss that is incurred in an income year commencing on or after 1 July 2005; and

(b) any net capital loss that is made in an income year commencing on or after 1 July 2005; and

(c) any deduction in respect of a bad debt that is incurred in an income year commencing on or after 1 July 2005.

The note formerly read:

Note:

Companies whose total income for an income year is more than $100 million cannot satisfy the same business test (even if the company carries on the same business): see section 165-212A .

S 707-210(6) substituted by No 147 of 2005, s 3 and Sch 1 item 119, effective 14 December 2005. For application provision, see note under Div 166 heading. S 707-210(6) formerly read:

707-210(6)
If subsection 166-5(4) affects whether the latest transferee can ^* utilise the loss for the income year because the latest transferee is a ^* listed public company or a ^* 100% subsidiary of one for the year, subsection 166-5(5) operates as if it required the ^* same business test to be applied to the ^* business the latest transferee carried on just before the time described in subsection (5) of this section.

S 707-210 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).