Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p1
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/7)
Character Range: 544267–546889

2  Section 165‑90 (link note)
Repeal the link note, substitute:

Subdivision 165‑CA—Applying net capital losses of earlier income years

Guide to Subdivision 165‑CA

165‑93  What this Subdivision is about

      In working out its net capital gain for an income year, a company cannot apply a net capital loss for an earlier income year unless:

           it has the same owners and the same control throughout the loss year and the income year; or

           it carried on the same business, entered no new kinds of transactions and conducted no new kinds of business.

Table of sections

Operative provisions

165‑96 When a company cannot apply a net capital loss

[This is the end of the Guide.]

Operative provisions

165‑96  When a company cannot apply a net capital loss

 (1) In working out its *net capital gain or *net capital loss for the *current year, a company cannot apply a *net capital loss it has for an earlier income year if Subdivision 165‑A would prevent it from deducting the loss for the current year if:

 (a) the loss were a *tax loss of the company for that earlier income year; and

 (b) section 165‑20 (about deducting part of a tax loss) were disregarded.

Note 1: A company's net capital gain or net capital loss for an income year is usually worked out under section 102‑5.

Note 2: Subdivision 165‑A deals with the deductibility of a company's tax loss for an earlier income year if there has been a change in the ownership or control of the company in the loss year or the income year.

 (2) If subsection (1) prevents the company from applying the *net capital loss, it can apply the part of the loss that it made during a part of that earlier income year, but only if, assuming that part of that income year had been treated as the whole of it, the company would have been entitled to apply the net capital loss.

Subdivision 165‑CB—Working out the net capital gain and the net capital loss for the income year of the change

Guide to Subdivision 165‑CB

165‑99  What this Subdivision is about

      A company that has not had the same ownership and control during the income year, and has not satisfied the same business test, works out its net capital gain and net capital loss under this Subdivision.

Table of sections

When a company must work out its net capital gain and net capital loss under this Subdivision

165‑102 On a change of ownership, or of control of voting power, unless the company carries on the same business

Working out the company's net capital gain and net capital loss

165‑105 First, divide the income year into periods
165‑108