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

133   After section 716-800

Insert:

716-805 Some companies cannot satisfy the same business test

(1) For the purposes of this Part (other than subparagraphs 707-125(2)(a)(ii) and (4)(a)(ii), Subdivision 709-D and Division 715), a company does not satisfy the *same business test for the *same business test period if the *total income of the company for the income year mentioned in paragraph (a) or (b) is more than $100 million:

(a) unless paragraph (b) applies - the income year whose last day falls within the *trial year; or

(b) if there is no such day in the trial year - the income year in which the joining time occurs.

Note: Section 165-212C sets out how to work out the total income of a company that is not able to work out its total income for a 12 month period.

(2) For the purposes of subparagraph 707-125(2)(a)(ii) or (4)(a)(ii), a company does not satisfy the *same business test for the *same business test period if the *total income of the company for the income year mentioned in that subparagraph is more than $100 million.

(3) For the purposes of Subdivision 709-D, a company does not satisfy the *same business test for the *same business test period if the *total income of the company for the following income year is more than $100 million:

(a) if item 1 of the table in subsection 709-215(3) applies - the income year in which the write-off time occurs;

(b) if item 2 of the table in subsection 709-215(3) applies - the income year in which the debt test period ends.

(4) For the purposes of Division 715, a company does not satisfy the *same business test for the *same business test period if the *total income of the company for the following income year is more than $100 million:

(a) for the purposes of section 715-95 (unless paragraph (c) of this section applies) - the income year whose last day falls within the 12 months before the leaving time;

(b) for the purposes of the rest of Division 715 (unless paragraph (c) of this subsection applies) - the income year whose last day falls within the *trial year;

(c) if paragraph (a) or (b) of this subsection applies but there is no such day in those 12 months or the trial year - the income year in which the joining time or the leaving time occurs.