Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_5
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 5
Character Range: 6205–7624

5  At the end of section 165‑37
Add:

Conditions in subsection (1) may be treated as having been satisfied in certain circumstances

 (4) If any of the conditions in subsection (1) have not been satisfied, those conditions are taken to have been satisfied if:
 (a) they would have been satisfied except for the operation of section 165‑165; and
 (b) the company has information from which it would be reasonable to conclude that less than 50% of the *notional loss for the *ownership test period has been reflected in deductions, capital losses, or reduced assessable income, that occurred, or could occur in future, because of the happening of any *CGT event in relation to any direct or indirect equity interests in the company during that period.

Time of happening of CGT event

 (5) The happening of a *CGT event in relation to a direct or indirect equity interest in the company that results in the failure of the company to satisfy a condition in subsection (1) is taken, for the purposes of paragraph (4)(b), to have occurred during the *ownership test period.

Meaning of direct and indirect equity interests

 (6) For the purposes of subsections (4) and (5):
 (a) the direct equity interests in the company are *shares in the company; and
 (b) the indirect equity interests in the company are shares or other interests in entities interposed between the company and persons referred to in subsection (1).