Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section operates if the loss had been transferred to the joining entity (by a previous operation of this Subdivision) because the entity from which the loss was transferred carried on during a particular period:
(a) the same business as it carried on at a particular time; or
(b) if section 165 - 211 applies in relation to the loss--a business similar to the business it carried on at a particular time.
Note: Section 165 - 211 enables an entity to satisfy the business continuity test by carrying on a similar business.
(2) The loss is not transferred from the joining entity to the * head company of the joined group (despite section 707 - 120), unless the joining entity satisfies the * business continuity test for:
(a) the * trial year (the business continuity test period ); and
(b) the time (the test time ) just before the end of the
income year in which the loss was transferred to the joining entity.