Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Subdivision sets out cases where the Commissioner may prevent a company, in working out its * net capital gain for an income year, from applying some or all of a * net capital loss it has for an earlier income year (or of part of one) (the excluded loss ). This is called disallowing the excluded loss.
Note: A company's net capital gain for an income year is usually worked out under section 102 - 5.
(2) However, the Commissioner cannot * disallow the * excluded loss if, in determining (under section 165 - 96) whether Subdivision 165 - A would prevent the company from deducting the loss (or the part of the loss) for the income year if the loss were a * tax loss of the company for that earlier income year, the company:
(a) would fail to meet a condition in section 165 - 12 (which is about the company maintaining the same owners) in respect of the income year; but
(b) would meet the condition in section 165 - 13 in respect of the income year by satisfying the * business continuity test under section 165 - 210.
Note: Subdivision 165 - A deals with the deductibility of a company's tax loss for an earlier income year if there has been a change in the ownership or control of the company in the period from the start of the loss year to the end of the income year.