Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:7_1:p9
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 9/13)
Character Range: 121361–124015

to it instead: see subsection 715‑95(2).

715‑90  How same business test applies if leaving time is changeover time for leaving company

 (1) This section applies if:
 (a) the leaving entity is a company; and
 (b) the leaving time is a *changeover time for the leaving entity.

 (2) The continuity period referred to in subsection 165‑115B(3), as applying to the leaving time as a *changeover time for the leaving entity, is taken to have ended just after that time.

Note: This ensures that the same business test is applied to the business that the leaving entity carries on at the leaving time: see subsection 165‑13(3).

715‑95  If ownership and control of leaving entity have not changed since head company's last changeover time

 (1) This section applies if:
 (a) the leaving entity is a company; and
 (b) the leaving time is not a *changeover time for the leaving entity; and
 (c) just before the leaving time, the *head company owned at least one *CGT asset:
 (i) that was a *165‑CC tagged asset just before the leaving time; and
 (ii) that it owned at the latest changeover time for the head company at or after the group came into existence and before the leaving time; and
 (d) at least one asset covered by paragraph (c) is an asset (a leaving asset) that becomes an asset of the leaving entity at the leaving time because subsection 701‑1(1) (Single entity rule) ceases to apply to the entity; and
 (e) the head company's *final RUNL at the leaving time is greater than nil.

 (2) This section also applies if the leaving entity is a trust.

 (3) If the *head company does not satisfy the *same business test for:
 (a) the period (the same business test period) starting at the earlier of:
 (i) the time 12 months before the leaving time; and
 (ii) when the head company came into existence;
  and ending just before the leaving time; and
 (b) the time (the test time) just before the *changeover time;
the head company must make one of the choices for which sections 715‑100, 715‑105 and 715‑110 provide.

For provisions about making one of these choices,
see sections 715‑175 to 715‑185.

715‑100  First choice: adjustable values of leaving assets reduced to nil

  The first choice is to reduce the *adjustable value of each leaving asset to nil. The choice has effect accordingly, just before the leaving time. The *head company's *final RUNL is not reduced because of it.

Note: The consequences of the choice are worked out under section 715‑145.

715‑105  Second choice: head company's final RUNL applied in reducing adjustable values of leaving assets that are loss assets

 (1) The second choice is to reduce under this section