Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section operates if:
(a) the joining entity made the loss for an income year starting after 30 June 1999; and
(b) subsection 165‑13(3), 165‑15(2) or (3) or 166‑5(4) or (5) is relevant to working out (under subsection 707‑120(1)) whether the loss is transferred from the joining entity.
(2) Work out whether the loss is transferred on the basis that subsection 165‑13(3) required the joining entity to satisfy the * same business test for:
(a) the period (the same business test period ) consisting of:
(i) the * trial year; and
(ii) the income year in which the continuity period ended, if that income year started before the trial year; and
(b) the time (the test time ) just before the end of the income year for which the loss was made by the joining entity.
Note: Subsection 165‑13(2) explains what the continuity period is. Subdivision 707‑B may affect the period for a loss made by the joining entity because of a previous transfer under this Subdivision.
(3) Work out whether the loss is transferred on the basis that:
(a) subsection 165‑15(2) specified that the period (the same business test period ) for the * same business test consisted of:
(i) the * trial year; and
(ii) the income year in which the person began to control, or became able to control, the voting power in the company, if that income year started before the trial year; and
(b) subsection 165‑15(3) required the same business test to be applied to the company’s business immediately before the time (the test time ) just before the end of the income year for which the loss was made by the joining entity.
(4) If Subdivision 166‑A would apply to the joining entity for an income year consisting of the * trial year, work out whether the loss is transferred on the basis that:
(a) subsection 166‑5(4) treated the joining entity as having satisfied the condition in section 165‑13 if the joining entity satisfied the * same business test for the period (the same business test period ) consisting of:
(i) the trial year; and
(ii) the income year described in subsection (5) of this section, if that income year started before the trial year; and
(b) subsection 166‑5(5) required the same business test to be applied to the * business that the joining entity carried on at the time (the test time ) just before the end of the income year for which the loss was made by the joining entity.
Note: Subdivision 166‑A applies to public listed companies and their 100% subsidiaries unless they choose that Subdivision 165‑A apply to them without the modifications made by Subdivision 166‑A.
(5) For the purposes of subparagraph (4)(a)(ii), the income year is:
(a) the income year in which occurred the first time covered by paragraph 166‑5(2)(a) or (b) for which there was no * substantial continuity of ownership of the joining entity as between the start of the * test period and that time; or
(b) the income year of the joining entity containing the time at which the joining entity is taken under subsection 707‑210(5) to fail to meet the condition in section 165‑12, if that subsection is relevant to working out whether the joining entity can * utilise the loss.
Note 1: Section 707‑205 affects the start of the test period if the joining entity made the loss under a previous operation of this Subdivision.
Note 2: Section 707‑210 is about whether a company can utilise certain losses transferred to it under this Subdivision from a company.
(6) Subsection (4) of this section has effect despite subsection 707‑210(6).
Note: Subsection 707‑210(6) modifies section 166‑5 for working out whether a company can utilise certain losses transferred to it under this Subdivision from a company.