Document ID: chunk:federal_register_of_legislation:C2024C00818:clause:1_31:p1
Version: federal_register_of_legislation:C2024C00818
Segment Type: clause
Provision Reference: sch 1 cl 31 (pt 1/2)
Character Range: 307531–310144

31  Rule—continuity of interest within company group

Main rule
 (1) The loss company may transfer the expenditure to the profit company in relation to the receiving project and the transfer year only if:
 (a) from the start of the financial year in which the expenditure was actually incurred, until the end of the transfer year—the company which held the receiving interest at any particular time was, at that time:
 (i) a group company in relation to the company which held the loss interest at that time; or
 (ii) unless the time is at the end of the transfer year—the company which held the loss interest at that time; and
 (b) when the expenditure was actually incurred:
 (i) unless section 41 applies to the expenditure—the company which actually incurred the expenditure held the loss interest in the transferring entity; or
 (ii) if section 41 applies to the expenditure—the company taken under subparagraph 41(1)(a)(ii) to have made the payment of the expenditure held the loss interest in the transferring entity.

Receiving project or transferring entity not in existence at particular time
 (2) For the purposes of subclause (1):
 (a) if the starting day for the receiving project was after the start of the financial year in which the expenditure was incurred—during the period from the start of that year until the start of the starting day, the company which held the receiving interest at the start of the starting day is taken to have held the receiving interest; and
 (b) if the finishing day for the receiving project was before the end of the transfer year—during the period from the start of the finishing day until the end of the transfer year, the profit company is taken to have held the receiving interest; and
 (c) if the starting day for the transferring entity was after the start of the financial year in which the expenditure was incurred—during the period from the start of that year until the start of the starting day, the company which held the loss interest at the start of the starting day is taken to have held the loss interest; and
 (d) if the finishing day for the transferring entity was before the end of the transfer year—during the period from the start of the finishing day until the end of the transfer year, the loss company is taken to have held the loss interest.
 (2A) If:
 (a) at a time (the cessation time) after the expenditure was incurred and on or after 1 July 1993, the loss company ceased to hold any interest in relation to the transferring entity; and
 (b) the cessation did not occur because of a transaction to which section 48 applies;
subclause (1)