Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section modifies Divisions 165 and 166 for the purposes of working out whether a company can * utilise a * tax loss or * net capital loss that it made because of a transfer under Subdivision 707‑A.
(2) Subdivision 165‑A and Division 166 operate for those purposes as if the * loss year started at the time of the transfer.
Note 1: This means that the ownership test period defined by subsection 165‑12(1) and the test period defined by subsection 166‑5(1) start at the time of the transfer.
Note 2: Without this section, those periods would start at the start of the income year in which the transfer occurred, so events occurring before the transfer (such as changes in holdings of voting power, rights to dividends or rights to capital or abnormal trading) could affect whether the company could utilise the tax loss or net capital loss.