Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 7/7)
Character Range: 559198–561141

such a benefit or advantage for someone else;

  or for purposes including that purpose.

 (2) However, that person's control of the voting power, or ability to control it, does not prevent the company from deducting the bad debt (or that part of it) if the company satisfies the *same business test for the *second continuity period (the same business test period).

 (3) Apply the *same business test to the *business that the company carried on immediately before the time (the test time) when the person began to control that voting power, or became able to control it.

For the same business test: see Subdivision 165‑E.

165‑132  When tax losses resulting from bad debts cannot be deducted

 (1) If:

 (a) a company can deduct a debt (or part of a debt) that it wrote off as bad in an income year; and

 (b) because the company failed to meet a condition in section 165‑123 (about the company maintaining the same owners), it could not have deducted the debt (or part) apart from section 165‑126 (about the company carrying on the same business); and

 (c) the company wrote off the debt after the *minimum continuity period; and

 (d) because of the deduction, the company has a *tax loss for that income year, or there was an increase in the amount of its *tax loss for that income year; and

 (e) the company carried on a *business during that income year for the purpose, or for purposes including the purpose, of securing a deduction for the debt (or part) by relying on section 165‑126;

the company cannot deduct the *tax loss for a later income year, or cannot deduct it to the extent of the increase, unless it also satisfies the *same business test for the later income year (the same business test period).

 (2) Apply the test to the *business that the company carried on immediately before the time (the test time) when the *minimum continuity period ended.

For the same business test: see Subdivision 165‑E.