Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-CA - Applying net capital losses of earlier income years  

 View history note

 Hide history note

History

Subdiv 165-CA inserted by No 46 of 1998.

Guide to Subdivision 165-CA

SECTION 165-93   What this Subdivision is about  

View history reference

In working out its net capital gain for an income year, a company cannot apply a net capital loss for an earlier income year unless:

(a) it has the same owners and the same control from the start of the loss year to the end of the income year; or

(b) it satisfies the business continuity test by carrying on the same business (including entering into no new kinds of transactions and conducting no new kinds of business), or by carrying on a similar business (on or after 1 July 2015).

 View history note

 Hide history note

History

S 165-93 amended by No 7 of 2019, s 3 and Sch 1 item 58, by substituting para (b), effective 1 April 2019 and applicable in relation to income years starting on or after 1 July 2015. Para (b) formerly read:

(b) it satisfies the same business test by carrying on the same business, entering into no new kinds of transactions and conducting no new kinds of business.

S 165-93 amended by No 164 of 2007 , s 3 and Sch 6 item 15, by omitting " (Companies whose total income for the income year is more than $100 million cannot satisfy the same business test for that year.) " after item (b), 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.

S 165-93 substituted by No 147 of 2005 and No 169 of 1999, and inserted by No 46 of 1998.

TABLE OF SECTIONS

TABLE OF SECTIONS

Operative provisions
165-96	When a company cannot apply a net capital loss

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.