Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 14/53)
Character Range: 2948571–2951309

Income Tax Assessment Act 1936; or
 (b) section 98A (Non‑resident beneficiaries assessable in respect of certain income) of that Act;
is attributable to a *capital gain that the trust made at a particular time during the period, this section applies to the attributable amount as if it were a *capital gain made by the company at that time.

165‑111  How to work out the company's net capital gain
  The company's net capital gain for the income year is worked out in this way:

      Working out the company's net capital gain
           Step 1. Add up the *notional net capital gains (if any) worked out under section 165‑108.
                  Note: A notional net capital loss for a period is not taken into account, but counts towards the company's net capital loss for the income year.
           Step 2. Add to the Step 1 amount so much of each amount included in the company's assessable income for the income year under:

                (a) section 97 (Beneficiary of a trust estate who is not under a legal disability) of the Income Tax Assessment Act 1936; or
                (b) section 98A (Non‑resident beneficiaries assessable in respect of certain income) of that Act;

            as is attributable to a *capital gain that the trust made outside the income year.
                  Note: This is relevant only if the trust has an income year that starts and ends at a different time from when the company's income year starts and ends.
           Step 3. If the Step 2 amount is more than zero, reduce it by applying any unapplied *net capital losses from previous income years. (If this reduces it to zero, the company has no net capital gain for the income year.)
                  Note: To apply net capital losses: see section 102‑15.
           Step 4. If the Step 3 amount is more than zero, it is the company's net capital gain.
Note : For exceptions and modifications to these rules: see section 102‑30.

165‑114  How to work out the company's net capital loss
  The company's net capital loss for the income year is worked out in this way:

      Working out the company's net capital loss
           Step 1. Add up the *notional net capital losses (if any) worked out under section 165‑108.
           Step 2. If the Step 1 amount is more than zero, it is the company's net capital loss.
Note: For exceptions and modifications to these rules: see section 102‑30.

Subdivision 165‑CC—Change of ownership or control of company that has an unrealised net loss

Guide to Subdivision 165‑CC

165‑115  What this Subdivision is about

      If a change occurs in the ownership or control of a company that has an unrealised net loss, the company cannot, to the extent of the unrealised net loss, have capital losses