Document ID: chunk:federal_register_of_legislation:C2016A00010:clause:1_4:p3
Version: federal_register_of_legislation:C2016A00010
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 3/4)
Character Range: 16639–19322

is a *CGT concession stakeholder of the company or trust; or
 (ii) if the entity is not an individual—has a *small business participation percentage in the company or trust of at least 20%; and
 (d) at that time, the company or trust:
 (i) is carrying on a *business, and has been carrying on a business since the start of the most recent income year ending before that time; and
 (ii) is not a *subsidiary member of a *consolidated group; and
 (e) the assessable income of the company or trust for that most recent income year was greater than nil, and at least 80% of that assessable income was:
 (i) from the carrying on of one or more businesses; but
 (ii) not *derived (directly or indirectly) from an asset of a kind to which paragraph 152‑40(4)(d) or (e) applies.
Note: Paragraphs 152‑40(4)(d) and (e) refer to financial instruments and assets used to derive interest, annuities, rent, royalties or foreign exchange gains.
 (2) For the purposes of this Subdivision, treat a *CGT asset as if it were an active asset of an entity at a particular time, if subsection 152‑40(3) would have been satisfied for the asset at that time had paragraph 152‑40(3)(a) only required the asset to be:
 (a) a *share in a company; or
 (b) an interest in a trust.
Note: This enables shares and interests in foreign entities to be active assets for the purposes of this Subdivision.
 (3) Subsections (1) and (2) do not limit section 152‑40 (about active assets).

118‑575  Creating and ending look‑through earnout rights
  Disregard a *capital gain or *capital loss you make because:
 (a) *CGT event C2 happens in relation to a *look‑through earnout right you receive; or
 (b) CGT event D1 happens when you create a look‑through earnout right in another entity.

118‑580  Temporarily disregard capital losses affected by look‑through earnout rights
 (1) Temporarily disregard a portion of a *capital loss you make from *disposing of a *CGT asset if the capital loss could be reduced by you receiving one or more *financial benefits under a *look‑through earnout right relating to the CGT asset and the disposal.
 (2) The portion of the *capital loss that is temporarily disregarded is:
 (a) if those *financial benefits can never exceed a maximum amount that is certain—so much of the capital loss as is equal to that maximum amount; or
 (b) otherwise—all of the capital loss.
Note: When you receive a financial benefit under the look‑through earnout right:
(a) you cease to disregard under this section a portion of your loss related to the amount of that financial benefit; and
(b) your capital proceeds for the disposal increase (see paragraph 116‑120(1)(b)), causing a reduction in the amount