Commonwealth Consolidated Acts Commonwealth Consolidated ActsIncome Tax Assessment Act 1997
1 Section 165 - 13
Repeal the section, substitute:
165 - 13 Alternatively, company must carry on same business
(1) This section sets out the condition that the 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 * same business test for the income year (the same business 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 same business test: see Subdivision 165 - E.
Division 2--Consequential amendments
Income Tax Assessment Act 1997
2 Paragraph 165 - 10(b)
Omit "conditions", substitute "condition".
3 Subsection 165 - 115B(3) (second sentence)
Repeal the sentence, substitute:
The changeover time is the test time for applying section 165 - 13 to the company.
4 Subsection 165 - 115B(4)
Omit "conditions", substitute "condition".
5 Subsections 165 - 115BA(4) and (5)
Omit "conditions", substitute "condition".
6 Paragraph 165 - 115BA(5)(c)
Omit "continuity period ended at the changeover time", substitute "changeover time is the test time ".
7 Paragraph 707 - 125(1)(b)
Omit "subsection 165 - 13(3),", substitute "section 165 - 13 or subsection".
8 Subsection 707 - 125(2)
Omit "subsection 165 - 13(3)", substitute "section 165 - 13".
9 Subparagraph 707 - 125(2)(a)(ii)
Repeal the subparagraph, substitute:
(ii) the income year that included the * test time worked out for section 165 - 13 for the joining entity (disregarding paragraph (b) of this subsection), if that income year started before the trial year; and
10 Subsection 707 - 125(2) (note)
Repeal the note.
11 Subsection 715 - 90(2)
Repeal the subsection, substitute:
(2) In applying to the leaving entity for the * changeover time that is the leaving time, subsection 165 - 115B(3) has effect as if it provided that the time just after the changeover time were the test time for applying section 165 - 13 to the company.
Note: This ensures that the same business test is applied to the business that the leaving entity carries on at the leaving time.
12 Subsection 719 - 260(2) (note)
Omit "conditions", substitute "condition".
13 Subsection 995 - 1(1) (definition of test time )
After "165 - 45,", insert "165 - 115B, 165 - 115BA,".
14 Subsection 995 - 1(1) (definition of test time )
After "715 - 70,", insert "715 - 90,".
Division 3--Application of amendments
15 Application
(1) The amendments made by this Part apply to assessments for the 1997 - 98 income year and later income years.
(2) However, an amendment made by this Part affecting a provision does not apply to anything to which the provision did not apply before the amendment.
Example: Section 707 - 125 of the Income Tax Assessment Act 1997 applies on and after 1 July 2002. Despite the reference in subitem (1) to the 1997 - 98 income year, the amendments of that section made by this Part do not apply before 1 July 2002.
Income Tax Assessment Act 1997
16 Section 165 - 126
Repeal the section, substitute:
165 - 126 Alternatively, company must carry on same business
(1) This section sets out the condition that the company must meet to be able to deduct a debt or part of a debt that it writes off as bad in the * current year if:
(a) either:
(i) the company fails to meet a condition in subsection 165 - 123(2), (3) or (4); or
(ii) it is not practicable to show that the company meets the conditions in those subsections; and
(b) paragraph 165 - 120(1)(b) (about the Commissioner thinking it is unreasonable to require the company to meet the conditions in section 165 - 123) does not apply.
Note: Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165 - 123(2), (3) and (4).
(2) The company must satisfy the * same business test for the * second continuity period (the same business 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 * first continuity period; (b) the company would meet the conditions in subsections 165 - 123(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 either: (a) the debt was incurred before the * current year; or (b) the company came into being during the current year | The end of the day on which the debt was incurred |
3 | All these conditions are met: (a) item 1 does not apply; (b) the debt was incurred in the * current year; (c) the company was in being throughout the current year | The start of the current year |
For the same business test: see Subdivision 165 - E.
Division 2--Consequential amendments
Income Tax Assessment Act 1997
17 Paragraph 165 - 120(1)(c)
Omit "conditions", substitute "condition".
18 Paragraph 165 - 132(1)(c)
Omit " * minimum continuity period", substitute " * test time worked out under section 165 - 126".
19 Subsection 165 - 132(2)
Omit "time (the test time ) when the * minimum continuity period ended", substitute " * test time worked out for section 165 - 126".
20 Subsection 995 - 1(1) (definition of minimum continuity period )
Repeal the definition.
21 Subsection 995 - 1(1) (definition of test time )
Omit "165 - 132,".
Division 3--Technical correction
Income Tax Assessment Act 1997
22 Subsection 166 - 40(5)
Omit "(2)(a) or (b)", substitute "(2)(c) or (d)".
Division 4--Application of amendments
23 Application
The amendments made by this Part apply to assessments for the 1998 - 99 income year and later income years.