Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p35
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 35/45)
Character Range: 5995863–5998549

year for which the loss was made by the joining entity.
Note: Subdivision 166‑A applies to widely held companies and eligible Division 166 companies unless they choose that Subdivision 165‑A apply to them without the modifications made by Subdivision 166‑A.
 (5) For the purposes of subparagraph (4)(a)(ii), the income year is:
 (a) the income year in which occurred the first time mentioned in subsection 166‑5(6); or
 (b) the income year of the joining entity containing the time at which the joining entity is taken under subsection 707‑210(5) to fail to meet the condition in section 165‑12, if that subsection is relevant to working out whether the joining entity can *utilise the loss.
Note 1: Section 707‑205 affects the start of the test period if the joining entity made the loss under a previous operation of this Subdivision.
Note 2: Section 707‑210 is about whether a company can utilise certain losses transferred to it under this Subdivision from a company.
 (6) Subsection (4) of this section has effect despite subsection 707‑210(6).
Note: Subsection 707‑210(6) modifies section 166‑5 for working out whether a company can utilise certain losses transferred to it under this Subdivision from a company.

707‑130  Modified pattern of distributions test
 (1) This section operates for the purpose of working out (under section 707‑120) whether the loss is transferred from the joining entity, if section 267‑20 in Schedule 2F to the Income Tax Assessment Act 1936 is relevant for that purpose.
Note 1: That section is relevant if the joining entity has been a non‑fixed trust at any time in the period from the start of the income year in which the entity made the loss until the time it became a subsidiary member of the joined group (and was not an excepted trust at all times in the period).
Note 2: That section prevents an entity from utilising a tax loss unless the entity meets the conditions in subsection 267‑30(2) (if applicable) and section 267‑35 in that Schedule by passing the pattern of distributions test for certain income years.
 (2) Section 267‑30 in that Schedule has effect as if the income year mentioned in that section were the joining year, and not the *trial year.
Note: Section 267‑30 in that Schedule requires the joining entity to pass the pattern of distributions test for the income year mentioned in that section if that entity distributed income or capital in that income year or within 2 months after the end of that income year.
 (3) Section 267‑35 in that Schedule has effect as if the reference in that section to an earlier income year were to an income year earlier than the joining year.
 (4) Disregard each distribution (if any) of