INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 3CA - Net capital gain or net capital loss of listed public company or its 100% subsidiary for year of income in which ownership or control of the company changed  

SECTION 160ZNSB   HOW DIVISION 3A APPLIES TO A LISTED PUBLIC COMPANY  

160ZNSB(1)   [Div 3A application modified]  

This Division modifies the way Division 3A applies to a company that is a listed public company at all times during the year of income (the test period ).

Note 1:

Division 3A is about when a company must calculate its net capital gain or net capital loss for the year of income in a special way.

Note 2:

This Division also modifies how Division 3A applies to a 100% subsidiary of a listed public company: see section 160ZNSD .

Note 3:

A company can choose that this Division is not to apply to it: see section 160ZNSE .

160ZNSB(2)   No abnormal trading.  

If there is no abnormal trading in shares in the listed public company during the test period, it is taken to have met the condition in paragraph 160ZNB(1)(a) (which is about there being persons having more than a 50% stake in it during the whole of the year of income).

160ZNSB(3)   Abnormal trading, but substantial continuity of ownership.  

If there is abnormal trading, but there is substantial continuity of ownership of the company as between the start of the test period and the time of each abnormal trading, the company is also taken to have met the condition in paragraph 160ZNB(1)(a) .

Note:

See section 160ZNSG to work out whether there is substantial continuity of ownership.

160ZNSB(4)   Abnormal trading without substantial continuity of ownership.  

If there is abnormal trading, and there is no substantial continuity of ownership of the company as between the start of the test period and the time of the abnormal trading, the company is taken to have failed to meet the condition in paragraph 160ZNB(1)(a) .

160ZNSB(5)   Satisfies the same business test.  

However, if the company satisfies the same business test for the rest of the year of income (the same business test period ) after the first abnormal trading covered by subsection (4), it is taken to have satisfied the condition in paragraph 160ZNB(1)(b) (which is about the company carrying on the same business).

Note:

For the same business test: see Division 3C.

160ZNSB(6)   [Business to which test is applied]  

Apply the same business test to the business that the company carried on immediately before the time of the first abnormal trading (the test time ) covered by subsection (4).