Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:6_5
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 6 cl 5
Character Range: 61577–63476

5                        The debt test period:                                                                                                                             Just before the start of the debt test period  Just after the end of the debt test period
                         (a) starts when the entity that is owed the debt for the period ceases to be a *member of a *consolidated group; and
                         (b) ends later when the entity becomes a member of a consolidated group

 (5) For the purposes of subsection (2), the modified provisions have effect as if section 267‑25 in Schedule 2F to the Income Tax Assessment Act 1936 applied in relation to debts whether they were incurred in the income year or an earlier income year.

Test time for same business test under section 165‑126

 (6) For the purposes of subsection (2), the modified provisions have effect as if subsection 165‑126(2) specified that the test time were the later of these times (or either of them if they are the same):
 (a) the first time at which it is not practicable to show that the company will meet the conditions in section 165‑123 (as modified by this section);
 (b) the time just after the start of the debt test period.

Business at and just after the end of the debt test period

 (7) If:
 (a) the debt test period ends when the entity that was owed the debt for the period becomes a *member of a *consolidated group; and
 (b) under the modified provisions, the *business that the entity carried on at or just after the end of the period is relevant to the question whether the entity could have deducted the debt as described in subsection (2);
those provisions have effect for the purposes of that subsection as if the entity carried on at those times the business it carried on just before the end of the period.

Division 2—Consequential amendments

Income Tax Assessment Act 1936