Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 165.13

Alternatively, the company must satisfy the business continuity test

             (1)  This section sets out the condition that a company must meet to be able to deduct the * tax loss if:

                     (a)  the company fails to meet a condition in subsection 165-12(2), (3) or (4); or

                     (b)  it is not practicable to show that the company meets the conditions in those subsections.

Note           Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165-12(2), (3) and (4).

             (2)  The company must satisfy the * business continuity test for the income year (the business continuity test period ). Apply the test to the * business the company carried on immediately before the time (the test time ) shown in the relevant item of the table.

 

Test time

Item

If:

The test time is:

1

It is practicable to show there is a period that meets these conditions:

(a) the period starts at the start of the * ownership test period or, if the company came into being during the * loss year, at the time the company came into being;

(b) the company would meet the conditions in subsections 165-12(2), (3) and (4) if the period were the ownership test period for the purposes of this Act

The latest time that it is practicable to show is in the period

2

Item 1 does not apply and the company was in being throughout the * loss year

The start of the loss year

3

Item 1 does not apply and the company came into being during the * loss year

The end of the loss year

For the business continuity test: see Subdivision 165-E.



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