Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You satisfy a requirement under this Division to retain records for a period if you:
(a) retain for that period an entry in a register for the records that satisfies the requirements in subsection (2), or a combination of the records and such an entry for them, containing all the information required to be contained in the records; and
(b) retain those of the records that contain the information entered in the register for at least 5 years after the requirement in paragraph (2)(b) is satisfied.
(a) you must make an entry in a register, in English, setting out some or all of the information contained in the records; and
(b) another entity who is a * registered tax agent or some other person approved by the Commissioner must certify in the register that the information entered is information from those records.
The trustee of a trust that is or has been a special disability trust may be eligible for an exemption to the extent that a dwelling is the main residence of the individual who is or has been the principal beneficiary of the trust.
Another beneficiary of the trust may be eligible for an exemption if the dwelling is distributed to that other beneficiary at or after the principal beneficiary's death.
(a) a dwelling that is your main residence; or
(b) a dwelling that passed to you as a beneficiary, or trustee, of a deceased estate;
to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.
There is a limit on the maximum area of land covered by the exemption.
Method statement
Step 1. Identify each earlier * CGT event (if any) that:
(a) happened in relation to land that was part of the * dwelling's * adjacent land at the time of the earlier CGT event, or happened in relation to your * ownership interest in that land at that time; and
(b) resulted in you losing rights to the substantial use and enjoyment of that land either completely or for at least 10 years;
for which you made a * capital gain or * capital loss that was wholly or partly disregarded because of the application of subsection 118 - 245(2).
Step 2. For each earlier * CGT event covered by step 1, work out the area of the exempt land for that application of subsection 118 - 245(2).
Step 3. Add the results from step 2 to the area of the land immediately under the * dwelling.
You can ignore capital gains and capital losses from CGT events that relate to investments, in Australian companies and unit trusts (and in some cases foreign holding companies), that meet the requirements of this Subdivision.
These investments are made:
(a) through limited partnerships, known as venture capital limited partnerships or early stage venture capital limited partnerships, that are unconditionally registered under Part 2 of the Venture Capital Act 2002 ; or
(b) through limited partnerships, known as Australian venture capital funds of funds, that are unconditionally registered under that Part; or
(c) directly by foreign residents who are registered under Part 3 of that Act.
(a) the entity is registered under the Pooled Development Funds Act 1992 ; and
(b) the entity owned the equity for at least 12 months.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 248
Compilation date: 1 January 2024
Includes amendments: Act No. 40, 2023, Act No. 61, 2023, Act No. 69, 2023, Act No. 101, 2023 and Act No. 103, 2023
Registered: 15 January 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt">- 35
Volume 4: sections 122 - 1 to 197 12 pt; font-weight:bold">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnote 4
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 1 January 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Chapter 3--Specialist liability rules
Part 3 - 3--Capital gains and losses: special topics
Division 122--Roll - over for the disposal of assets to, or the creation of assets in, a wholly - owned company
Guide to Division 122 1
122 - 1 What this Division is about
Subdivision 122 - A--Disposal or creation of assets by an individual or trustee to a wholly - owned company
Guide to Subdivision 122 - A
122 - 5 What this Subdivision is about
When is a roll - over available
122 - 15 Disposal or creation of assets--wholly - owned company
122 - 20 What you receive for the trigger event
122 - 25 Other requirements to be satisfied
122 - 35 What if the company undertakes to discharge a liability (disposal case)
122 - 37 Rules for working out what a liability in respect of an asset is
Replacement - asset roll - over if you dispose of a CGT asset
122 - 40 Disposal of a CGT asset
Replacement - asset roll - over if you dispose of all the assets of a business
122 - 45 Disposal of all the assets of a business
122 - 50 All assets acquired on or after 20 September 1985
122 - 55 All assets acquired before 20 September 1985
122 - 60 Assets acquired before and after 20 September 1985
Replacement - asset roll - over for a creation case
Same - asset roll - over consequences for the company (disposal case)
122 - 70 Consequences for the company (disposal case)
Same - asset roll - over consequences for the company (creation case)
122 - 75 Consequences for the company (creation case)
Subdivision 122 - B--Disposal or creation of assets by partners to a wholly - owned company
Guide to Subdivision 122 - B
122 - 120 What this Subdivision is about
When is a roll - over available
122 - 125 Disposal or creation of assets--wholly - owned company
122 - 130 What the partners receive for the trigger event
122 - 135 Other requirements to be satisfied
122 - 140 What if the company undertakes to discharge a liability (disposal case)
122 - 145 Rules for working out what a liability in respect of an interest in an asset is
Replacement - asset roll - over if partners dispose of a CGT asset
122 - 150 Capital gain or loss disregarded
122 - 155 Disposal of post - CGT or pre - CGT interests
122 - 160 Disposal of both post - CGT and pre - CGT interests
Replacement - asset roll - over if the partners dispose of all the assets of a business
122 - 170 Capital gain or loss disregarded
122 - 180 All interests acquired on or after 20 September 1985
122 - 185 All interests acquired before 20 September 1985
122 - 190 Interests acquired before and after 20 September 1985
Replacement - asset roll - over for a creation case
Same - asset roll - over consequences for the company (disposal case)
122 - 200 Consequences for the company (disposal case)
Same - asset roll - over consequences for the company (creation case)
122 - 205 Consequences for the company (creation case)
Division 124--Replacement - asset roll - overs
Guide to Division 124 31
124 - 1 What this Division is about
124 - 5 How to find your way around this Division
Subdivision 124 - A--General rules
124 - 10 Your ownership of one CGT asset ends
124 - 15 Your ownership of more than one CGT asset ends
124 - 20 Share and interest sale facilities
Subdivision 124 - B--Asset compulsorily acquired, lost or destroyed
When a roll - over is available
124 - 70 Events giving rise to a roll - over
124 - 75 Other requirements if you receive money
124 - 80 Other requirements if you receive an asset
The consequences of a roll - over being available
124 - 85 Consequences for receiving money
124 - 90 Consequences for receiving an asset
124 - 95 You receive both money and an asset
Subdivision 124 - C--Statutory licences
124 - 140 New statutory licences
124 - 145 Rollover consequences--capital gain or loss disregarded
124 - 150 Rollover consequences--partial roll - over
124 - 155 Roll - over consequences--all original licences were post - CGT
124 - 160 Roll - over consequences--all original licences were pre - CGT
124 - 165 Roll - over consequences--some original licences were pre - CGT, others were post - CGT
Subdivision 124 - D--Strata title conversion
124 - 190 Strata title conversion
Subdivision 124 - E--Exchange of shares or units
124 - 240 Exchange of shares in the same company
124 - 245 Exchange of units in the same unit trust
Subdivision 124 - F--Exchange of rights or options
124 - 295 Exchange of rights or option to acquire shares in a company
124 - 300 Exchange of rights or option to acquire units in a unit trust
Subdivision 124 - I--Change of incorporation
Guide to Subdivision 124 - I
124 - 510 What this Subdivision is about
124 - 515 Object of this Subdivision
Change of incorporation without change of entity
124 - 520 Change of incorporation without change of entity
124 - 525 Old corporation wound up
Special consequences of some roll - overs
124 - 530 Shares in company replacing pre - CGT and post - CGT mix of interest and rights in body
124 - 535 Rights as member of Indigenous corporation replacing pre - CGT and post - CGT mix of interest and rights in body
Subdivision 124 - J--Crown leases
Guide to Subdivision 124 - J
124 - 570 What this Subdivision is about
124 - 575 Extension or renewal of Crown lease
124 - 580 Meaning of Crown lease
124 - 585 Original right differs in area from new right
124 - 590 Part of original right excised
124 - 595 Treating parts of new right as separate assets
124 - 600 What is the roll - over?
Subdivision 124 - K--Depreciating assets
124 - 655 Roll - over for depreciating assets
124 - 660 Right granted to associate
Subdivision 124 - L--Prospecting and mining entitlements
Guide to Subdivision 124 - L
124 - 700 What this Subdivision is about
124 - 705 Extension or renewal of prospecting or mining entitlement
124 - 710 Meaning of prospecting entitlement and mining entitlement
124 - 715 Original entitlement differs in area from new entitlement
124 - 720 Part of original entitlement excised
124 - 725 Treating parts of new entitlement as separate assets
124 - 730 What is the roll - over?
Subdivision 124 - M--Scrip for scrip roll - over
Guide to Subdivision 124 - M
124 - 775 What this Subdivision is about
124 - 780 Replacement of shares
124 - 781 Replacement of trust interests
124 - 782 Transfer or allocation of cost base of shares acquired by acquiring entity etc.
124 - 783 Meaning of significant stakeholder , common stakeholder , significant stake and common stake
124 - 783A Rights that affect stakes
124 - 784 Cost base of equity or debt given within acquiring group
124 - 784A When arrangement is a restructure
124 - 784B What is the cost base and reduced cost base when arrangement is a restructure?
124 - 784C Cost base of equity or debt given within acquiring group
124 - 785 What is the roll - over?
124 - 800 Interest received for pre - CGT interest
124 - 810 Certain companies and trusts not regarded as having 300 members or beneficiaries
Subdivision 124 - N--Disposal of assets by a trust to a company
Guide to Subdivision 124 - N
124 - 850 What this Subdivision is about
124 - 855 What this Subdivision deals with
124 - 860 Requirements for roll - over
124 - 865 Entities both choose the roll - over
124 - 870 Roll - over for owner of units or interests in a trust
124 - 875 Effect on the transferor and transferee
Subdivision 124 - P--Exchange of a membership interest in an MDO for a membership interest in another MDO
Guide to Subdivision 124 - P
124 - 975 What this Subdivision is about
124 - 980 Exchange of membership interests in an MDO
124 - 985 What the roll - over is for post - CGT interests
Subdivision 124 - Q--Exchange of stapled ownership interests for ownership interests in a unit trust
Guide to Subdivision 124 - Q
124 - 1040 What this Subdivision is about
124 - 1045 Exchange of stapled securities
124 - 1055 Consequences of the roll - over for exchanging members
124 - 1060 Consequences of the roll - over for interposed trust
Subdivision 124 - R--Water entitlements
Guide to Subdivision 124 - R
124 - 1100 What this Subdivision is about
124 - 1105 Replacement water entitlements roll - over
124 - 1110 Roll - over consequences--capital gain or loss disregarded
124 - 1115 Roll - over consequences--partial roll - over
124 - 1120 Roll - over consequences--all original entitlements post - CGT
124 - 1125 Roll - over consequences--all original entitlements pre - CGT
124 - 1130 Roll - over consequences--some original entitlements pre - CGT, others post - CGT
124 - 1135 Reduction in water entitlements roll - over
124 - 1140 Roll - over consequences--capital gain or loss disregarded
124 - 1145 Roll - over consequences--all original entitlements post - CGT
124 - 1150 Roll - over consequences--some original entitlements pre - CGT, others post - CGT
124 - 1155 Roll - over for variation to CGT asset
124 - 1160 Roll - over consequences
124 - 1165 Roll - over consequences--partial roll - over
Subdivision 124 - S--Interest realignment arrangements
Guide to Subdivision 124 - S
124 - 1220 What this Subdivision is about
124 - 1225 Disposals of interests under interest realignment arrangements
124 - 1230 Roll - over consequences--partial roll - over
124 - 1235 Roll - over consequences--all original interests were post - CGT and pre - UCA
124 - 1240 Roll - over consequences--all original interests were pre - CGT
124 - 1245 Roll - over consequences--original interests were of mixed CGT status, all were pre - UCA
124 - 1250 Roll - over consequences--some original interests were pre - UCA
Guide to Division 125 127
125 - 1 What this Division is about
Subdivision 125 - A--Object of this Division
125 - 5 Object of this Division
Subdivision 125 - B--Consequences for owners of interests
Guide to Subdivision 125 - B
125 - 50 Guide to Subdivision 125 - B
125 - 55 When a roll - over is available for a demerger
125 - 60 Meaning of ownership interest and related terms
125 - 65 Meanings of demerger group , head entity and demerger subsidiary
125 - 70 Meanings of demerger , demerged entity and demerging entity
125 - 75 Exceptions to subsection 125 - 70(2)
125 - 80 What is the roll - over?
125 - 85 Cost base adjustments where CGT event happens but no roll - over chosen
125 - 90 Cost base adjustments where no CGT event
125 - 95 No other cost base adjustment after demerger
125 - 100 No further demerger relief in some cases
Subdivision 125 - C--Consequences for members of demerger group
Guide to Subdivision 125 - C
125 - 150 Guide to Subdivision 125 - C
125 - 155 Certain capital gains or losses disregarded for demerging entity
125 - 165 Adjusted capital loss for value shift under a demerger
125 - 170 Reduced cost base reduction if demerger asset subject to roll - over
Subdivision 125 - D--Public trading trusts
Guide to Subdivision 125 - D
125 - 225 Guide to Subdivision 125 - D
125 - 230 Application of Division to public trading trusts
Subdivision 125 - E--Miscellaneous
125 - 235 Share and interest sale facilities
Division 126--Same - asset roll - overs
Guide to Division 126 148
126 - 1 What this Division is about
Subdivision 126 - A--Marriage or relationship breakdowns
126 - 5 CGT event involving spouses
126 - 15 CGT event involving company or trustee
126 - 20 Subsequent CGT event happening to roll - over asset where transferor was a CFC or a non - resident trust
126 - 25 Conditions for the purposes of subsections 126 - 5(3A) and 126 - 15(5)
Subdivision 126 - B--Companies in the same wholly - owned group
Guide to Subdivision 126 - B
126 - 40 What this Subdivision is about
126 - 45 Roll - over for members of wholly - owned group
126 - 50 Requirements for roll - over
126 - 55 When there is a roll - over
126 - 60 Consequences of roll - over
126 - 75 Originating company is a CFC
126 - 85 Effect of roll - over on certain liquidations
Subdivision 126 - C--Changes to trust deeds
Guide to Subdivision 126 - C
126 - 125 What this Subdivision is about
126 - 130 Changes to trust deeds
126 - 135 Consequences of roll - over
Subdivision 126 - D--Small superannuation funds
126 - 140 CGT event involving small superannuation funds
Subdivision 126 - E--Entitlement to shares after demutualisation and scrip for scrip roll - over
Guide to Subdivision 126 - E
126 - 185 What this Subdivision is about
126 - 190 When there is a roll - over
126 - 195 Consequences of roll - over
Subdivision 126 - G--Transfer of assets between certain trusts
Guide to Subdivision 126 - G
126 - 215 What this Subdivision is about
126 - 220 Object of this Subdivision
126 - 225 When a roll - over may be chosen
126 - 230 Beneficiaries' entitlements not be discretionary etc.
126 - 235 Exceptions for roll - over
126 - 240 Consequences for the trusts
126 - 245 Consequences for beneficiaries--general approach for working out cost base etc.
126 - 250 Consequences for beneficiaries--other approach for working out cost base etc.
126 - 255 No other cost base etc. adjustment for beneficiaries
126 - 260 Giving information to beneficiaries
126 - 265 Interest sale facilities
Guide to Division 128 185
128 - 1 What this Division is about
128 - 10 Capital gain or loss when you die is disregarded
128 - 15 Effect on the legal personal representative or beneficiary
128 - 20 When does an asset pass to a beneficiary?
128 - 25 The beneficiary is a trustee of a superannuation fund etc.
Special rules for joint tenants
Guide to Division 130 192
130 - 1 What this Division is about
Subdivision 130 - A--Bonus shares and units
Guide to Subdivision 130 - A
130 - 15 Acquisition time and cost base of bonus equities
130 - 20 Issue of bonus shares or units
130 - 50 Application to options
Subdivision 130 - C--Convertible interests
130 - 60 Shares or units acquired by converting a convertible interest
Subdivision 130 - D--Employee share schemes
130 - 75 Objects of Subdivision
130 - 80 ESS interests acquired under employee share schemes
130 - 85 Interests in employee share trusts
130 - 90 Shares held by employee share trusts
130 - 95 Shares and rights in relation to ESS interests
130 - 97 Application of certain provisions of Division 83A
Subdivision 130 - E--Exchangeable interests
130 - 100 Exchangeable interest
130 - 105 Shares acquired in exchange for the disposal or redemption of an exchangeable interest
Subdivision 130 - F--Exploration investments
130 - 110 Reducing the reduced cost base before disposal
132 - 1 Lessee incurs expenditure to get lease term varied or waived
132 - 5 Lessor pays lessee for improvements
132 - 10 Grant of a long - term lease
132 - 15 Lessee of land acquires reversionary interest of lessor
Division 137--Granny flat arrangements
Subdivision 137 - A--When CGT events do not happen
Guide to Subdivision 137 - A
137 - 1 What this Subdivision is about
137 - 15 CGT event does not happen when a certain kind of granny flat arrangement is entered into
137 - 20 CGT event does not happen when a certain kind of granny flat arrangement is varied
137 - 25 CGT event does not happen when a certain kind of granny flat arrangement is terminated
Division 149--When an asset stops being a pre - CGT asset
Subdivision 149 - A--Key concepts
149 - 10 What is a pre - CGT asset?
149 - 15 Majority underlying interests in a CGT asset
Subdivision 149 - B--When asset of non - public entity stops being a pre - CGT asset
149 - 25 Which entities are affected
149 - 30 Effects if asset no longer has same majority underlying ownership
149 - 35 Cost base elements of asset that stops being a pre - CGT asset
Subdivision 149 - C--When asset of public entity stops being a pre - CGT asset
149 - 50 Which entities are affected
149 - 55 Entity to give the Commissioner evidence periodically as to whether asset still has same majority underlying ownership
149 - 60 What the evidence must show
149 - 70 Effects if asset no longer has same majority underlying ownership
149 - 75 Cost base elements of asset that stops being a pre - CGT asset
149 - 80 No more evidence needed after asset stops being a pre - CGT asset
Subdivision 149 - F--How to treat a "demutualised" public entity
149 - 162 Subdivision applies only if entity gives sufficient evidence
149 - 165 Members treated as having underlying interests in assets until demutualisation
149 - 170 Effect of demutualisation of interposed company
Division 152--Small business relief
Guide to Division 152 236
152 - 1 What this Division is about
Subdivision 152 - A--Basic conditions for relief under this Division
Guide to Subdivision 152 - A
152 - 5 What this Subdivision is about
152 - 10 Basic conditions for relief
152 - 12 Special conditions for CGT event D1
Maximum net asset value test
152 - 15 Maximum net asset value test
152 - 20 Meaning of net value of the CGT assets
152 - 40 Meaning of active asset
152 - 45 Continuing time periods for involuntary disposals
Treatment of passively held CGT assets
152 - 47 Spouses or children taken to be affiliates for certain passively held CGT assets
152 - 48 Working out an entity's aggregated turnover for passively held CGT assets
152 - 49 Businesses that are winding up
152 - 50 Significant individual test
152 - 55 Meaning of significant individual
152 - 60 Meaning of CGT concession stakeholder
Small business participation percentage
152 - 65 Small business participation percentage
152 - 70 Direct small business participation percentage
152 - 75 Indirect small business participation percentage
Nomination of controllers of discretionary trust
152 - 78 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
CGT event happens to asset or interest within 2 years of an individual's death
152 - 80 CGT event happens to an asset or interest within 2 years of individual's death
Subdivision 152 - B--Small business 15 - year exemption
Guide to Subdivision 152 - B
152 - 100 What this Subdivision is about
152 - 105 15 - year exemption for individuals
152 - 110 15 - year exemption for companies and trusts
152 - 115 Continuing time periods for involuntary disposals
152 - 125 Payments to company's or trust's CGT concession stakeholders are exempt
Subdivision 152 - C--Small business 50% reduction
Guide to Subdivision 152 - C
152 - 200 What this Subdivision is about
152 - 205 You get the small business 50% reduction
152 - 210 You may also get the small business retirement exemption and small business roll - over relief
152 - 215 15 - year rule has priority
152 - 220 You may choose not to apply this Subdivision
Subdivision 152 - D--Small business retirement exemption
Guide to Subdivision 152 - D
152 - 300 What this Subdivision is about
152 - 305 Choosing the exemption
152 - 310 Consequences of choice
152 - 315 Choosing the amount to disregard
152 - 320 Meaning of CGT retirement exemption limit
152 - 325 Company or trust conditions
152 - 330 15 - year rule has priority
Subdivision 152 - E--Small business roll - over
Guide to Subdivision 152 - E
152 - 400 What this Subdivision is about
152 - 410 When you can obtain the roll - over
152 - 415 What the roll - over consists of
152 - 420 Rules where an individual who has obtained a roll - over dies
152 - 430 15 - year rule has priority
Part 3 - 5--Corporate taxpayers and corporate distributions
Division 160--Corporate loss carry back tax offset for 2020 - 21, 2021 - 22 or 2022 - 23 for businesses with turnover under $5 billion
Guide to Division 160 285
160 - 1 What this Division is about
Subdivision 160 - A--Entitlement to and amount of loss carry back tax offset
160 - 5 Entitlement to loss carry back tax offset
160 - 10 Amount of loss carry back tax offset
Subdivision 160 - B--Loss carry back choice
160 - 15 Loss carry back choice
160 - 16 Changing a loss carry back choice
160 - 20 Entity must have had turnover less than $5 billion for loss year
160 - 25 Entity must have been a corporate tax entity during relevant years
160 - 30 Transferred tax losses, income tax liabilities etc. not included
160 - 35 Integrity rule--no loss carry back tax offset if scheme entered into
Division 164--Non - share capital accounts for companies
Guide to Division 164 298
164 - 1 What this Division is about
164 - 10 Non - share capital account
164 - 15 Credits to non - share capital account
164 - 20 Debits to non - share capital account
Division 165--Income tax consequences of changing ownership or control of a company
Guide to Division 165 304
165 - 1 What this Division is about
Subdivision 165 - A--Deducting tax losses of earlier income years
Guide to Subdivision 165 - A
165 - 5 What this Subdivision is about
165 - 10 To deduct a tax loss
165 - 12 Company must maintain the same owners
165 - 13 Alternatively, the company must satisfy the business continuity test
165 - 15 The same people must control the voting power, or the company must satisfy the business continuity test
165 - 20 When company can deduct part of a tax loss
Subdivision 165 - B--Working out the taxable income and tax loss for the income year of the change
Guide to Subdivision 165 - B
165 - 23 What this Subdivision is about
165 - 25 Summary of this Subdivision
165 - 30 Flow chart showing the application of this Subdivision
When a company must work out its taxable income and tax loss under this Subdivision
165 - 35 On a change of ownership, unless the company satisfies the business continuity test
165 - 37 Who has more than a 50% stake in the company during a period
165 - 40 On a change of control of the voting power in the company, unless the company satisfies the business continuity test
Working out the company's taxable income
165 - 45 First, divide the income year into periods
165 - 50 Next, calculate the notional loss or notional taxable income for each period
165 - 55 How to attribute deductions to periods
165 - 60 How to attribute assessable income to periods
165 - 65 How to calculate the company's taxable income for the income year
Working out the company's tax loss
165 - 70 How to calculate the company's tax loss for the income year
Special rules that apply if the company is in partnership
165 - 75 How to calculate the company's notional loss or notional taxable income for a period when the company was a partner
165 - 80 How to calculate the company's share of a partnership's notional loss or notional net income for a period if both entities have the same income year
165 - 85 How to calculate the company's share of a partnership's notional loss or notional net income for a period if the entities have different income years
165 - 90 Company's full year deductions include a share of partnership's full year deductions
Subdivision 165 - CA--Applying net capital losses of earlier income years
Guide to Subdivision 165 - CA
165 - 93 What this Subdivision is about
165 - 96 When a company cannot apply a net capital loss
Subdivision 165 - CB--Working out the net capital gain and the net capital loss for the income year of the change
Guide to Subdivision 165 - CB
165 - 99 What this Subdivision is about
When a company must work out its net capital gain and net capital loss under this Subdivision
165 - 102 On a change of ownership, or of control of voting power, unless the company satisfies the business continuity test
Working out the company's net capital gain and net capital loss
165 - 105 First, divide the income year into periods
165 - 108 Next, calculate the notional net capital gain or notional net capital loss for each period
165 - 111 How to work out the company's net capital gain
165 - 114 How to work out the company's net capital loss
Subdivision 165 - CC--Change of ownership or control of company that has an unrealised net loss
Guide to Subdivision 165 - CC
165 - 115 What this Subdivision is about
165 - 115AA ........... Special rules to save compliance costs
165 - 115A Application of Subdivision
165 - 115B What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time
165 - 115BAWhat happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock
165 - 115BB Order of application of assets: residual unrealised net loss
165 - 115C Changeover time--change in ownership of company
165 - 115D Changeover time--change in control of company
165 - 115E What is an unrealised net loss
165 - 115F Notional gains and losses
Subdivision 165 - CD--Reductions after alterations in ownership or control of loss company
Guide to Subdivision 165 - CD
165 - 115GA ................ What this Subdivision is about
165 - 115GB .............. When adjustments must be made
165 - 115GC ............... How adjustments are calculated
165 - 115H How this Subdivision applies
165 - 115J Object of Subdivision
165 - 115K Application and interpretation
165 - 115L Alteration time--alteration in ownership of company
165 - 115M ..... Alteration time--alteration in control of company
165 - 115N Alteration time--declaration by liquidator or administrator
165 - 115P Notional alteration time--disposal of interests in company within 12 months before alteration time
165 - 115Q Notional alteration time--disposal of interests in company earlier than 12 months before alteration time
165 - 115R When company is a loss company at first or only alteration time in income year
165 - 115S When company is a loss company at second or later alteration time in income year
165 - 115T Reduction of certain amounts included in company's overall loss at alteration time
165 - 115U Adjusted unrealised loss
165 - 115V Notional losses
165 - 115W ............ Calculation of trading stock decrease
165 - 115X Relevant equity interest
165 - 115Y Relevant debt interest
165 - 115Z What constitutes a controlling stake in a company
165 - 115ZAReductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165 - 115ZB ..... Adjustment amounts for the purposes of section 165 - 115ZA
165 - 115ZC ....................... Notices to be given
165 - 115ZDAdjustment (or further adjustment) for interest realised at a loss after global method has been used
Subdivision 165 - C--Deducting bad debts
Guide to Subdivision 165 - C
165 - 117 What this Subdivision is about
165 - 119 Application of Subdivision
165 - 120 To deduct a bad debt
165 - 123 Company must maintain the same owners
165 - 126 Alternatively, the company must satisfy the business continuity test
165 - 129 Same people must control the voting power, or the company must satisfy the business continuity test
165 - 132 When tax losses resulting from bad debts cannot be deducted
Subdivision 165 - D--Tests for finding out whether the company has maintained the same owners
The primary and alternative tests
165 - 150 Who has more than 50% of the voting power in the company
165 - 155 Who has rights to more than 50% of the company's dividends
165 - 160 Who has rights to more than 50% of the company's capital distributions
165 - 165 Rules about tests for a condition or occurrence of a circumstance
165 - 175 Tests can be satisfied by a single person
Rules affecting the operation of the tests
165 - 180 Arrangements affecting beneficial ownership of shares
165 - 185 Shares treated as not having carried rights
165 - 190 Shares treated as always having carried rights
165 - 200 Rules do not affect totals of shares, units in unit trusts or rights carried by shares and units
165 - 202 Shares held by government entities and charities etc.
165 - 203 Companies where no shares have been issued
165 - 205 Death of share owner
165 - 207 Trustees of family trusts
165 - 208 Companies in liquidation etc.
165 - 209 Dual listed companies
Subdivision 165 - E--Business continuity test
165 - 210 The business continuity test--carrying on the same business
165 - 211 The business continuity test--carrying on a similar business
165 - 212D Restructure of MDOs etc.
165 - 212E Entry history rule does not apply for the purposes of sections 165 - 210 and 165 - 211
Subdivision 165 - F--Special provisions relating to ownership by non - fixed trusts
165 - 215 Special alternative to change of ownership test for Subdivision 165 - A
165 - 220 Special alternative to change of ownership test for Subdivision 165 - B
165 - 225 Special way of dividing the income year under Subdivision 165 - B
165 - 230 Special alternative to change of ownership test for Subdivision 165 - C
165 - 235 Information about non - fixed trusts with interests in company
165 - 240 Notices where requirements of section 165 - 235 are met
165 - 245 When an entity has a fixed entitlement to income or capital of a company
Subdivision 165 - G--Other special provisions
165 - 250 Control of companies in liquidation etc.
Division 166--Income tax consequences of changing ownership or control of a widely held or eligible Division 166 company
Guide to Division 166 428
166 - 1 What this Division is about
Subdivision 166 - AA--The object of this Division
166 - 3 The object of this Division
Subdivision 166 - A--Deducting tax losses of earlier income years
166 - 5 How Subdivision 165 - A applies to a widely held or eligible Division 166 company
166 - 15 Companies can choose that this Subdivision is not to apply to them
Subdivision 166 - B--Working out the taxable income, tax loss, net capital gain and net capital loss for the income year of the change
166 - 20 How Subdivisions 165 - B and 165 - CB apply to a widely held or eligible Division 166 company
166 - 25 How to work out the taxable income, tax loss, net capital gain and net capital loss
166 - 35 Companies can choose that this Subdivision is not to apply to them
Subdivision 166 - C--Deducting bad debts
166 - 40 How Subdivision 165 - C applies to a widely held or eligible Division 166 company
166 - 50 Companies can choose that this Subdivision is not to apply to them
Subdivision 166 - CA--Changeover times and alteration times
166 - 80 How Subdivision 165 - CC or 165 - CD applies to a widely held or eligible Division 166 company
166 - 90 Companies can choose that this Subdivision is not to apply to them
Subdivision 166 - D--Tests for finding out whether the widely held or eligible Division 166 company has maintained the same owners
Guide to Subdivision 166 - D
166 - 135 What this Subdivision is about
The ownership tests: substantial continuity of ownership
166 - 145 The ownership tests: substantial continuity of ownership
166 - 165 Relationship with rules in Division 165
166 - 175 Corporate change in a company
Subdivision 166 - E--Concessional tracing rules
Guide to Subdivision 166 - E
166 - 215 What this Subdivision is about
Application of this Subdivision
166 - 220 Application of this Subdivision
Stakes of less than 10% in the tested company
166 - 225 Direct stakes of less than 10% in the tested company
166 - 230 Indirect stakes of less than 10% in the tested company
166 - 235 Voting, dividend and capital stakes
Stakes held directly and/or indirectly by widely held companies
166 - 240 Stakes held directly and/or indirectly by widely held companies
166 - 245 Stakes held by other entities
When identity of foreign stakeholders is not known
166 - 255 Bearer shares in foreign listed companies
166 - 260 Depository entities holding stakes in foreign listed companies
Other rules relating to voting power and rights
166 - 265 Persons who actually control voting power or have rights are taken not to control power or have rights
166 - 270 Single notional entity stakeholders taken to have minimum voting control, dividend rights and capital rights
166 - 272 Same shares or interests to be held
When the rules in this Subdivision do not apply
166 - 275 Rules in this Subdivision intended to be concessional
166 - 280 Controlled test companies
Division 167--Companies whose shares carry unequal rights to dividends, capital distributions or voting power
Guide to Division 167 470
167 - 1 What this Division is about
Subdivision 167 - A--Rights to dividends or capital distributions
Guide to Subdivision 167 - A
167 - 5 What this Subdivision is about
167 - 7 Simplified outline of this Subdivision
167 - 10 When this Subdivision applies
167 - 15 First way--disregard debt interests
167 - 20 Second way--also disregard secondary share classes
167 - 25 Third way--treat remaining shares as having fixed rights to dividends and capital distributions
167 - 30 Fixing rights if practicable to work out market values
167 - 35 Fixing rights if impracticable to work out market values etc.
167 - 40 The valuing times for conditions listed in subsection 167 - 10(1)
Subdivision 167 - B--Voting power
Guide to Subdivision 167 - B
167 - 75 What this Subdivision is about
167 - 80 When this Subdivision applies
167 - 85 Different method for working out voting power
167 - 90 Dual listed companies
Division 170--Treatment of certain company groups for income tax purposes
Subdivision 170 - A--Transfer of tax losses within certain wholly - owned groups of companies
Guide to Subdivision 170 - A
170 - 1 What this Subdivision is about
170 - 5 Basic principles for transferring tax losses
Effect of transferring a tax loss
170 - 10 When a company can transfer a tax loss
170 - 15 Income company is taken to have incurred transferred loss
170 - 20 Who can deduct transferred loss
170 - 25 Tax treatment of consideration for transferred tax loss
170 - 30 Companies must be in existence and members of the same wholly - owned group etc.
170 - 32 Tax loss incurred by the loss company because of a transfer under Subdivision 707 - A
170 - 33 Alternative test of relations between the loss company and other companies
170 - 35 The loss company
170 - 40 The income company
170 - 42 If the income company has become the head company of a consolidated group or MEC group
170 - 45 Maximum amount that can be transferred
170 - 50 Transfer by written agreement
170 - 55 Losses must be transferred in order they are incurred
170 - 60 Income company cannot transfer transferred tax loss
Effect of agreement to transfer more than can be transferred
170 - 65 Agreement transfers as much as can be transferred
170 - 70 Amendment of assessments
Australian permanent establishments of foreign financial entities
170 - 75 Treatment like Australian branches of foreign banks
Subdivision 170 - B--Transfer of net capital losses within certain wholly - owned groups of companies
Guide to Subdivision 170 - B
170 - 101 What this Subdivision is about
170 - 105 Basic principles for transferring a net capital loss
Effect of transferring a net capital loss
170 - 110 When a company can transfer a net capital loss
170 - 115 Who can apply transferred loss
170 - 120 Gain company is taken to have made transferred loss
170 - 125 Tax treatment of consideration for transferred tax loss
170 - 130 Companies must be in existence and members of the same wholly - owned group etc.
170 - 132 Net capital loss made by the loss company because of a transfer under Subdivision 707 - A
170 - 133 Alternative test of relations between the loss company and other companies
170 - 135 The loss company
170 - 142 If the gain company has become the head company of a consolidated group or MEC group
170 - 145 Maximum amount that can be transferred
170 - 150 Transfer by written agreement
170 - 155 Losses must be transferred in order they are made
170 - 160 Gain company cannot transfer transferred net capital loss
Effect of agreement to transfer more than can be transferred
170 - 165 Agreement transfers as much as can be transferred
170 - 170 Amendment of assessments
Australian permanent establishments of foreign financial entities
170 - 174 Treatment like Australian branches of foreign banks
Subdivision 170 - C--Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly - owned groups of companies
Guide to Subdivision 170 - C
170 - 201 What this Subdivision is about
170 - 205 Object of Subdivision
170 - 210 Transfer of tax loss: direct and indirect interests in the loss company
170 - 215 Transfer of tax loss: direct and indirect interests in the income company
170 - 220 Transfer of net capital loss: direct and indirect interests in the loss company
170 - 225 Transfer of net capital loss: direct and indirect interests in the gain company
Subdivision 170 - D--Transactions by a company that is a member of a linked group
Guide to Subdivision 170 - D
170 - 250 What this Subdivision is about
170 - 255 Application of Subdivision
170 - 260 Linked group
170 - 270 Immediate consequences for originating company
170 - 275 Subsequent consequences for originating company
170 - 280 What happens if certain events happen in respect of the asset
Division 175--Use of a company's tax losses or deductions to avoid income tax
Guide to Division 175 537
175 - 1 What this Division is about
Subdivision 175 - A--Tax benefits from unused tax losses
175 - 5 When Commissioner can disallow deduction for tax loss
175 - 10 First case: income or capital gain injected into company because of available tax loss
175 - 15 Second case: someone else obtains a tax benefit because of tax loss available to company
Subdivision 175 - B--Tax benefits from unused deductions
175 - 20 Income or capital gain injected into company because of available deductions
175 - 25 Deduction injected into company because of available income or capital gain
175 - 30 Someone else obtains a tax benefit because of a deduction, income or capital gain available to company
175 - 35 Tax loss resulting from disallowed deductions
Subdivision 175 - CA--Tax benefits from unused net capital losses of earlier income years
175 - 40 When Commissioner can disallow net capital loss of earlier income year
175 - 45 First case: capital gain injected into company because of available net capital loss
175 - 50 Second case: someone else obtains a tax benefit because of net capital loss available to company
Subdivision 175 - CB--Tax benefits from unused capital losses of the current year
175 - 55 When Commissioner can disallow capital loss of current year
175 - 60 Capital gain injected into company because of available capital loss
175 - 65 Capital loss injected into company because of available capital gain
175 - 70 Someone else obtains a tax benefit because of capital loss or gain available to company
175 - 75 Net capital loss resulting from disallowed capital losses
Subdivision 175 - C--Tax benefits from unused bad debt deductions
175 - 80 When Commissioner can disallow deduction for bad debt
175 - 85 First case: income or capital gain injected into company because of available bad debt
175 - 90 Second case: someone else obtains a tax benefit because of bad debt deduction available to company
Subdivision 175 - D--Common rules
175 - 95 When a person has a shareholding interest in the company
175 - 100 Commissioner may disallow excluded losses etc. of insolvent companies
Division 180--Information about family trusts with interests in companies
Guide to Division 180 554
180 - 1 What this Division is about
Subdivision 180 - A--Information relevant to Division 165
180 - 5 Information about family trusts with interests in companies
180 - 10 Notice where requirements of section 180 - 5 are met
Subdivision 180 - B--Information relevant to Division 175
180 - 15 Information about family trusts with interests in companies
180 - 20 Notice where requirements of section 180 - 15 are met
Division 195--Special types of company
Subdivision 195 - A--Pooled development funds (PDFs)
Guide to Subdivision 195 - A
195 - 1 What this Subdivision is about
Working out a PDF's taxable income and tax loss
195 - 5 Deductibility of PDF tax losses
195 - 10 PDF cannot transfer tax loss
195 - 15 Tax loss for year in which company becomes a PDF
Working out a PDF's net capital gain and net capital loss
195 - 25 Applying a PDF's net capital losses
195 - 30 PDF cannot transfer net capital loss
195 - 35 Net capital loss for year in which company becomes a PDF
Working out a PDF's loss carry back tax offset
195 - 37 PDF cannot carry back tax loss
Subdivision 195 - B--Limited partnerships
Guide to Subdivision 195 - B
195 - 60 What this Subdivision is about
195 - 65 Tax losses cannot be transferred to a VCLP, an ESVCLP, an AFOF or a VCMP
195 - 70 Previous tax losses can be deducted after ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195 - 72 Tax losses cannot be carried back to before ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195 - 75 Determinations to take account of income years of less than 12 months
Subdivision 195 - C--Corporate collective investment vehicles
Guide to Subdivision 195 - C
195 - 100 What this Subdivision is about
195 - 105 Effect of this Subdivision
195 - 110 Each sub - fund of a CCIV is taken to be a separate trust
195 - 115 A CCIV sub - fund trust is a unit trust
195 - 120 Beneficiary of a CCIV sub - fund trust has fixed entitlements to shares of income and capital of the trust
195 - 123 How to work out the income of the trust estate of a CCIV sub - fund trust for an income year
195 - 125 When a beneficiary of a CCIV sub - fund trust is presently entitled to trust income
195 - 127 When a beneficiary of a CCIV sub - fund trust has an individual interest in exempt income and non - assessable non - exempt income of the trust estate
195 - 130 Application of Division 275 (managed investment trusts) to a CCIV sub - fund trust
195 - 135 Application of Division 276 (AMITs) to a CCIV sub - fund trust
195 - 140 Entry on Australian Business Register
Division 197--Tainted share capital accounts
Guide to Division 197 579
197 - 1 What this Division is about
Subdivision 197 - A--What transfers into a company's share capital account does this Division apply to?
197 - 5 Division generally applies to an amount transferred to share capital account from another account
197 - 10 Exclusion for amounts that could be identified as share capital
197 - 15 Exclusion for amounts transferred under debt/equity swaps
197 - 20 Exclusion for amounts transferred leading to there being no shares with a par value--non - Corporations Act companies
197 - 25 Exclusion for transfers from option premium reserves
197 - 30 Exclusion for transfers made in connection with demutualisations of non - insurance etc. companies
197 - 35 Exclusion for transfers made in connection with demutualisations of insurance etc. companies
197 - 37 Exclusion for transfers made in connection with demutualisations of private health insurers
197 - 38 Exclusion for transfers connected with demutualisations of friendly society health or life insurers
197 - 40 Exclusion for post - demutualisation transfers relating to life insurance companies
197 - 42 Exclusion for exploration credits
Subdivision 197 - B--Consequence of transfer: franking debit arises
197 - 45 A franking debit arises in relation to the transfer
Subdivision 197 - C--Consequence of transfer: tainting of share capital account
197 - 50 The share capital account becomes tainted (if it is not already tainted)
197 - 55 Choosing to untaint a tainted share capital account
197 - 60 Choosing to untaint--liability to untainting tax
197 - 65 Choosing to untaint--further franking debits may arise
197 - 70 Due date for payment of untainting tax
197 - 75 General interest charge for late payment of untainting tax
197 - 80 Notice of liability to pay untainting tax
197 - 85 Evidentiary effect of notice of liability to pay untainting tax
Guide to Division 122
122 - A Disposal or creation of assets by an individual or trustee to a wholly - owned company
122 - B Disposal or creation of assets by partners to a wholly - owned
company
