Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_18:p4
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 18 (pt 4/23)
Character Range: 30143–33055

within 12 months before alteration time
165‑115Q Notional alteration time—disposal of interests in company earlier than 12 months before alteration time
165‑115R When company is a loss company at first or only alteration time in income year
165‑115S When company is a loss company at second or later alteration time in income year
165‑115T Reduction of certain amounts included in company's overall loss at alteration time
165‑115U Adjusted unrealised loss
165‑115V Notional losses
165‑115W Calculation of trading stock decrease
165‑115X Relevant equity interest
165‑115Y Relevant debt interest
165‑115Z What constitutes a controlling stake in a company
165‑115ZA Reductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165‑115ZB Adjustment amounts for the purposes of section 165‑115ZA
165‑115ZC Notices to be given

[This is the end of the Guide]

Operative provisions

165‑115J  Object of Subdivision

  The main object of this Subdivision is to make appropriate adjustments (under section 165‑115ZA) to the tax values of significant equity and debt interests held directly or indirectly by entities other than individuals in a *loss company whose ownership or control alters.
The purpose of the adjustments is to prevent the duplication of the company's realised and unrealised losses when any of those interests are *disposed of or otherwise realised. This happens because the company's losses are reflected in the values of the interests.

165‑115K  Application and interpretation

Application

 (1) This Subdivision applies if:
 (a) an alteration time occurs in respect of a company; and
 (b) the company is a *loss company at the alteration time; and
 (c) one or more entities had relevant equity interests or relevant debt interests in the company immediately before the alteration time.

Note 1: For alteration time, see sections 165‑115L, 165‑115M, 165‑115N, 165‑115P and 165‑115Q.

Note 2: For relevant equity interests and relevant debt interests, see sections 165‑115X and 165‑115Y.

Alteration time before commencement time to be disregarded

 (2) An alteration time does not include a time before the commencement time.

Commencement time

 (3) The commencement time for a company is:
 (a) if the company was in existence at 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999—that time; or
 (b) if the company came into existence after that time—the time when it came into existence.

Certain alteration times to be disregarded

 (4) If:
 (a) a time (the test time) would, apart from this subsection, be an alteration time in relation to a company; and
 (b) the company does not have any losses of the kinds referred to in paragraphs 165‑115R(3)(a), (b), (c) and (d) and 165‑115S(3)(a) and (b); and
 (c) the test time is not a changeover time in relation to the company