Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p15
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 15/20)
Character Range: 131211–133840

165‑15(1)(a), (b) and (c) did not exist in relation to the latest transferor.

Meeting conditions in section 165‑12

 (2) The latest transferee is taken to meet the conditions in section 165‑12 for the income year in relation to the loss if and only if the company (the test company) described in subsection (3) would have met those conditions for the income year had the circumstances described in subsection (4) existed.

Note 1: The latest transferee and the test company may be the same company.

Note 2: Section 707‑405 may affect the income year for which the test company is treated as having made the loss, if the loss is referable to part of an income year.

 (3) The test company is the first company to make the loss. However, if:
 (a) the loss was made by the latest transferor because of one or more earlier transfers of the loss under Subdivision 707‑A from a company to a company; and
 (b) one or more of those earlier transfers occurred because the company from which that earlier transfer was made satisfied the *same business test for the *same business test period and *test time specified in Division 165 or 166 or section 707‑125 (as affected by section 707‑205 or Subdivision 707‑D if relevant);
the test company is the company to which the loss was transferred in the most recent transfer described in paragraph (b).

 (4) The circumstances are that:
 (a) the test company was not treated by Subdivision 707‑A for the income year as not having made the loss; and
 (b) if the test company made the loss apart from that Subdivision and transferred the loss to itself under that Subdivision—the test company was not treated by that Subdivision for the income year as having made the loss for the income year in which the transfer occurred; and
 (c) nothing happened, after the time the loss was transferred from the test company to the *head company of a *consolidated group, to *membership interests or voting power in an entity that was at that time a *subsidiary member of the group, that would affect whether the test company would meet the conditions in section 165‑12 for the income year; and
 (d) if the loss has later been transferred under that Subdivision to the head company of another consolidated group—nothing happened, after the time of the later transfer, to membership interests or voting power:
 (i) in the later transferor; or
 (ii) in an entity that was at that time a subsidiary member of that other group interposed between the later transferor and the head company;
  that would affect whether the test company would meet the conditions in section 165‑12 for the income year.

Failing