Private ruling: Business continuity test
Date of advice: 25 July 2023
Published: 11 September 2023

Ruling: Q1: Will Company A satisfy the business continuity test in section 165-13 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Facts Company A is an Australian company with carried forward tax losses. Company A is the head company of an income tax consolidated group under Part 3-90 of the ITAA 1997. Company A has failed the continuity of ownership test in section 165-12 of the ITAA 1997 in respect of it ' s carried forward tax losses. Company A proposes to undertake certain activities in a foreign country (through subsidiaries) which are identical to some of the activities Company A currently undertakes in Australia.



Reasons for decision: Summary: Having regard to the activities of Company A immediately before the relevant 'test time' (worked out under subsection 165-13(2) of the ITAA 1997) and the proposed activities, Company A will satisfy the business continuity test in section 165-13 of the ITAA 1997.