Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 (147 of 2005)

Schedule 1   Loss recoupment rules for companies etc.

Income Tax Assessment Act 1997

138   Subsection 719-260(3)

Repeal the subsection, substitute:

Same business test for focal company under Division 166

(3) If subsection 166-5(5) affects whether the focal company can *utilise the loss for the claim year because the focal company is a *widely held company or an *eligible Division 166 company, or both, during the year, subsection 166-5(6) operates as if it required the *same business test to be applied to the *business the focal company carried on just before the time described in subsection (2) of this section.

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