Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p52
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 52/53)
Character Range: 3039023–3041718

of the person to comply with the requirements of this Subdivision.

165‑115ZD  Adjustment (or further adjustment) for interest realised at a loss after global method has been used
 (1) This section affects how sections 165‑115ZA and 165‑115ZB apply to an interest (the equity) in, or a debt owed by, a company if, apart from this section, a loss (the realised loss):
 (a) would be *realised for income tax purposes by a *realisation event that happens to the equity or debt; or
 (b) would be so realised but for Subdivision 170‑D (which defers realisation of capital losses and deductions);
and the company chose to use the *global method of working out whether it had an adjusted unrealised loss at the last alteration time:
 (c) that happened for the company before the realisation event; and
 (d) immediately before which the equity or debt was, or was part of:
 (i) if the company was a *loss company at that alteration time—a relevant equity interest, or a relevant debt interest, that an entity had in the company; or
 (ii) otherwise—what would have been such an interest if the company had been a loss company at that alteration time.
Note: If that last alteration time is before the day on which the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 received the Royal Assent, the owner of the equity or debt may choose to apply section 165‑115ZD of the Income Tax (Transitional Provisions) Act 1997 instead of this section.
 (2) In addition to any application to the equity or debt, in relation to that last alteration time, that sections 165‑115ZA and 165‑115ZB have apart from this section, those sections apply (and are taken always to have applied) to the equity or debt, in relation to that last alteration time, as if:
 (a) the company had an adjusted unrealised loss at that time worked out under this section; and
 (b) the company were therefore a *loss company at that time; and
 (c) that adjusted unrealised loss were the company's overall loss at that time.
 (3) For the purposes of how sections 165‑115ZA and 165‑115ZB apply because of this section, the adjustment amount under section 165‑115ZB is to be worked out and applied in accordance with subsection 165‑115ZB(6) (the non‑formula method).

Adjusted unrealised loss worked out under this section
 (4) The adjusted unrealised loss referred to in paragraph (2)(a) is worked out using this method statement:

      Method statement
           Step 1. Add up the amount or value of each thing covered by subsection (5). (If the total exceeds the realised loss, reduce the total by the excess.)
           Step 2. Reduce the step 1 amount by so much of the realised loss as it