Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p43
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 43/53)
Character Range: 3017847–3020268

or could deduct at a later time, an amount in respect of the cost of the *acquisition, or a net loss on the *disposal, of the interest or debt, where the deduction reflected or would have reflected, or would reflect, as the case may be, any part of the company's overall loss.
 (3C) Subsection (3A) does not apply in respect of a particular time if an entity that had a direct or indirect interest in, or was owed a debt by, the *widely held company at an earlier time, and had a controlling stake in the *loss company (see section 165‑115Z) at the earlier time:
 (a) made a *capital loss (other than a capital loss that was disregarded) because a *CGT event happened in respect of the interest or debt, where the capital loss reflected any part of the loss company's overall loss; or
 (b) has deducted or could have deducted at an earlier time, or could deduct at a later time, an amount in respect of the cost of the *acquisition, or a net loss on the *disposal, of the interest or debt, where the deduction reflected or would have reflected, or would reflect, as the case may be, any part of the company's overall loss.
 (4) An entity (the first entity) that, apart from this subsection, would have a relevant debt interest in a *loss company at a particular time does not have such an interest if, at that time, there is no other entity that has a direct or indirect interest in, or is owed a debt by, the first entity, being an interest or debt in respect of which:
 (a) the other entity could, if a *CGT event happened in respect of the interest or debt, make a *capital loss (other than a capital loss that would be disregarded) that reflects any part of the loss company's overall loss; or
 (b) the other entity could deduct, or can deduct or could deduct at a later time:
 (i) an amount in respect of the cost of the *acquisition of the interest or debt; or
 (ii) a net loss on the *disposal of the interest or debt;
  where the deduction reflects, or would have reflected, any part of the loss company's overall loss.
 (4A) Subsection (4) does not apply if the first entity is a *widely held company.
 (5) Subsection (4) does not apply to the first entity in respect of a particular time if an entity that had a direct or indirect interest in, or was owed a debt by, the first entity at an earlier time:
 (a) made a capital loss (other than a capital loss that would be disregarded) at an earlier time because a