Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 166.20

(1) This Subdivision modifies the way Subdivision 165-B applies to a company
that is a *listed public company at all times during the income year (the test
period). Note 1: Subdivision 165-B is about when a company must calculate its
taxable income and tax loss for the income year in a special way. Note 2: This
Subdivision also modifies how Subdivision 165-B applies to a 100% subsidiary
of a listed public company: see section 166-30. Note 3: A company can choose
that this Subdivision is not to apply to it: see section 166- 35.

No abnormal trading

(2) If there is no *abnormal trading in *shares in the *listed public company
during the *test period, it is taken to have met the condition in paragraph
165-35(a) (which is about there being persons having *more than a 50% stake in
it during the whole of the income year).

Abnormal trading, but substantial continuity of ownership

(3) If there is *abnormal trading, but there is *substantial continuity of
ownership of the company as between the start of the

*test period and the time of each abnormal trading, the company is also taken
to have met the condition in paragraph 165-35(a). See section 166-145 to work
out whether there is substantial continuity of ownership.

Abnormal trading without substantial continuity of ownership

(4) If there is *abnormal trading, and there is no *substantial continuity of
ownership of the company as between the start of the

*test period and the time of the abnormal trading, the company is taken to
have failed to meet the condition in paragraph 165-35(a).

Satisfies the same business test

(5) However, if the company satisfies the *same business test for the rest of
the income year (the same business test period) after the first *abnormal
trading covered by subsection (4), it is taken to have satisfied the condition
in paragraph 165-35(b) (which is about the company carrying on the same
business). For the same business test: see Subdivision 165-E.

(6) Apply the *same business test to the *business that the company carried on
immediately before the time of the first *abnormal trading (the test time)
covered by subsection (4).