Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p26
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 26/30)
Character Range: 6209397–6212065

for the head company; and
 (b) making the additional assumptions in section 715‑290.
Note: If the leaving entity is a trust, it cannot have a changeover time (because Subdivision 165‑CC applies only to companies), so section 715‑95 applies to it instead: see subsection 715‑95(2).

715‑90  How business continuity test applies if leaving time is changeover time for leaving company
 (1) This section applies if:
 (a) the leaving entity is a company; and
 (b) the leaving time is a *changeover time for the leaving entity.
 (2) In applying to the leaving entity for the *changeover time that is the leaving time, subsection 165‑115B(3) and paragraph 165‑115BA(5)(c) have effect as if they provided that the time just after the changeover time were the test time for applying section 165‑13 to the company.
Note: This ensures that the business continuity test is applied to the business that the leaving entity carries on at the leaving time.

715‑95  If ownership and control of leaving entity have not changed since head company's last changeover time
 (1) This section applies if:
 (a) the leaving entity is a company; and
 (b) the leaving time is not a *changeover time for the leaving entity; and
 (c) just before the leaving time, the *head company owned at least one *CGT asset:
 (i) that was a *165‑CC tagged asset just before the leaving time; and
 (ii) that it owned at the latest changeover time for the head company at or after the group came into existence and before the leaving time; and
 (d) at least one asset covered by paragraph (c) is an asset (a leaving asset) that becomes an asset of the leaving entity at the leaving time because subsection 701‑1(1) (Single entity rule) ceases to apply to the entity; and
 (e) the head company's *final RUNL at the leaving time is greater than nil.
 (2) This section also applies if the leaving entity is a trust.
 (3) If the *head company does not satisfy the *business continuity test for:
 (a) the period (the business continuity test period) starting at the earlier of:
 (i) the time 12 months before the leaving time; and
 (ii) when the head company came into existence;
  and ending just before the leaving time; and
 (b) the time (the test time) just before the *changeover time;
the head company must make one of the choices for which sections 715‑100, 715‑105 and 715‑110 provide.
Note: For provisions about making one of these choices, see sections 715‑175 to 715‑185.

715‑100  First choice: adjustable values of leaving assets reduced to nil
  The first choice is to reduce the *adjustable value of each leaving asset to nil. The choice has effect accordingly, just before the leaving time. The *head