Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p31
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 31/35)
Character Range: 3285930–3288635

company (or parts of them) for an income year if:
 (a) the company has made a *capital gain some or all of which (the injected capital gain) it would not have made if it did not have those capital losses; and
 (b) the injected capital gain was made in that income year.
The disallowed capital losses and parts of capital losses may exceed the amount of the injected capital gain.
Note: The disallowance may result in a net capital loss for the income year: see section 175‑75.
 (2) The Commissioner cannot *disallow the *capital losses or parts of the capital losses if the *continuing shareholders will benefit from the making of the injected capital gain to an extent that the Commissioner thinks fair and reasonable having regard to their respective *shareholding interests in the company.
Note: Section 175‑100 allows the Commissioner to disallow capital losses or parts of capital losses of an insolvent company.
 (3) The continuing shareholders are the individuals who had *shareholding interests in the company both immediately before the *injected capital gain was made, and immediately afterwards.

175‑65  Capital loss injected into company because of available capital gain
 (1) The Commissioner may *disallow a *capital loss of a company for an income year to the extent that the company would not have made the loss if it had not also made some or all of a *capital gain it made in that income year.
Note: The disallowance may result in a tax loss for the income year: see section 175‑75.
 (2) The Commissioner cannot *disallow any of the *capital loss if:
 (a) the *continuing shareholders will benefit from any profit or advantage that has arisen or might arise directly or indirectly from the loss being made; and
 (b) the Commissioner thinks that the extent to which they will benefit is fair and reasonable having regard to their respective *shareholding interests in the company.
Note: Section 175‑100 allows the Commissioner to disallow a capital loss of an insolvent company.
 (3) The continuing shareholders are the individuals who had *shareholding interests in the company both immediately before the *capital loss was made, and immediately afterwards.

175‑70  Someone else obtains a tax benefit because of capital loss or gain available to company
 (1) The Commissioner may *disallow a *capital loss of a company if:
 (a) a person (other than the company) has obtained or will obtain a tax benefit in connection with a *scheme; and
 (b) the scheme would not have been entered into or carried out if the company had not made some or all (the available capital loss) of the capital loss.
However, the capital loss may be disallowed only to the extent of the available capital loss.