Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 415 - Designated infrastructure projects  

Subdivision 415-B - Tax losses and bad debts  

Change of ownership of trusts and companies

SECTION 415-40   Bad debts written off by companies  

Scope

415-40(1)    
This section applies to a debt that a company writes off as bad, if the company is a * designated infrastructure project entity at a time (the status time ) in the income year in which the debt was incurred.

Modifications of Divisions 165 and 166

415-40(2)    
Despite subsection 165-123(1) or 166-40(2), the * ownership test period or * test period under that subsection starts at the earlier of:

(a) the first time that occurs after the status time and on or after:

(i) in the case of subsection 165-123(1) - the start of the * first continuity period; or

(ii) in the case of subsection 166-40(2) - the time the company chooses under that subsection;

and at which the company is not a * designated infrastructure project entity; and

(b) the end of the * second continuity period.

415-40(3)    
In a case to which paragraph (2)(b) applies, the company is treated as meeting the conditions in section 165-123.

415-40(4)    

Despite subsection 165-126(2) , 165-129(2) , 165-132(1) or 166-40(5) , the *business continuity test period under that subsection starts at the start of the * ownership test period or * test period (whichever is applicable) if, apart from this subsection, the business continuity test period would start earlier.

415-40(5)    
Despite subsection 165-126(2) , 165-129(3) or 166-40(6) , the * test time under that subsection occurs just after the start of the * ownership test period or * test period (whichever is applicable) if, apart from this subsection, the test time would occur earlier.

415-40(6)    
A reference in subsection 165-129(1) to the * first continuity period is treated as being a reference to the period:

(a) starting at the start of the * ownership test period; and

(b) ending at the end of the income year in which the ownership test period starts.

Exception

415-40(7)    
Disregard this section for the purposes of Subdivision 175-C (about tax benefits).