Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 33/53)
Character Range: 2994472–2997038

*disposals of interests or debts by the entity are references to:
 (a) previous disposals within the period referred to in paragraph (1)(b); and
 (b) previous disposals before that period if those previous disposals and any one or more of the following:
 (i) the disposal of the equity or debt;
 (ii) a disposal referred to in paragraph (a);
 (iii) a disposal at the alteration time;
  occurred as part of an *arrangement.
 (3) The time immediately before the *disposal of the earlier equity or earlier debt is taken to have been an alteration time (a notional alteration time) in respect of the company.
 (4) The entity:
 (a) is taken to have had, immediately before the notional alteration time, a relevant equity interest in the company constituted by the earlier equity or a relevant debt interest in the company constituted by the earlier debt, as the case may be; and
 (b) is taken not to have had, immediately before the notional alteration time, any other relevant equity interest or relevant debt interest in the company.
 (5) No entity (other than the entity referred to in paragraph (1)(b)) is taken to have had a relevant equity interest or a relevant debt interest in the company immediately before the notional alteration time.
 (6) In applying this Subdivision in relation to the company in respect of a time after a notional alteration time, the notional alteration time is taken not to have occurred.
Note: For relevant equity interests and relevant debt interests, see sections 165‑115X and 165‑115Y.

165‑115R  When company is a loss company at first or only alteration time in income year

Application
 (1) The question whether a company is a loss company at the first or only alteration time in a particular income year is to be worked out in this way.

Assumed income year
 (2) Assume that the period that started at the beginning of the income year and ended at the alteration time is an income year and apply paragraphs (3)(a), (b), (c) and (d) on that assumption.

What is a loss company
 (3) The company is a loss company at the alteration time if:
 (a) at the beginning of the income year it had a *tax loss or tax losses for an earlier income year or earlier income years; or
 (b) at the beginning of the income year it had a *net capital loss or net capital losses for an earlier income year or earlier income years; or
 (c) it has a tax loss for the income year, calculated as if the income year were a period for the purposes of Subdivision 165‑B; or
 (d) it has a net capital loss for the income year, calculated as if the income year