Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p45
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 45/66)
Character Range: 6440000–6442827

transferred the loss to itself in a *COT transfer)                                                                                                   The start of the income year for which the test company made the loss
  2                                                                       The test company made the loss because it was transferred to the test company under Subdivision 707‑A in a transfer other than a *COT transfer (even if the test company first made the loss apart from that Subdivision)                        The time of the transfer
  3                                                                       The test company is the test company for the focal company for the loss because the test company was the *top company for a *MEC group whose *head company made the loss before it was transferred to the focal company under Subdivision 707‑A  The time that was the relevant time under subsection (1) for the test company as the test company for the first company for which the test company was the test company for the loss

Note: Subsection (4) applies if the focal company made the loss because of a COT transfer of the loss to the focal company from another company.
 (5) Disregard section 719‑90 for the purposes of items 1 and 2 of the table in subsection (4) of this section if the test company was identified using subsection 719‑265(6).
Note: This ensures that section 719‑90 does not make those items inapplicable by treating the test company as if another company had made the loss instead of the test company.

Other events do not override assumption
 (6) If the test company transferred the loss to itself or another company under Subdivision 707‑A, assume that the transfer did not affect, for income years ending after the transfer:
 (a) the fact that the test company made the loss; or
 (b) the income year for which the test company is assumed (under subsection (1), (2) or (4)) to have made the loss.

719‑275  Assumptions about nothing happening to affect direct and indirect ownership of the test company
 (1) This section sets out an assumption that must be made whenever an event described in subsection (2) occurs:
 (a) after the time assumed under section 719‑270 to be the start of the income year for which the test company made the loss; and
 (b) before the end of the claim year;
(whether or not the test company or the focal company is one of the companies mentioned in the description of the event).
 (2) Assume that, after an event described in an item of the table, nothing happens in relation to *membership interests or voting power in an entity described in the item that would affect whether the test company would meet the conditions in section 165‑12 for the claim year and the loss.

Assumption about nothing happening to membership interests or voting power