Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 2/7)
Character Range: 546651–549311

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 Next, calculate the notional net capital gain or notional net capital loss for each period
165‑111 How to work out the company's net capital gain
165‑114 How to work out the company's net capital loss

[This is the end of the Guide.]

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

  A company must calculate its *net capital gain and *net capital loss for the income year under this Subdivision if:

 (a) it must calculate its taxable income and *tax loss for the income year under Subdivision 165‑B; or

 (b) it would be required to calculate them under that Subdivision but for subsection 165‑50(3) (about cases where that Subdivision would make no difference to the taxable income).

Note: In the case of a listed public company or its 100% subsidiary, Subdivision 166‑B modifies how this Subdivision applies, unless the company chooses otherwise.

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

165‑105  First, divide the income year into periods

  Divide the income year into periods according to section 165‑45 (which is about working out the company's taxable income under Subdivision 165‑B).

165‑108  Next, calculate the notional net capital gain or notional net capital loss for each period

 (1) The company has a notional net capital gain for a period if the total of the *capital gains it made during the period exceeds the total of the *capital losses it made during the period. The notional net capital gain is the amount of the excess.

 (2) On the other hand, if the total of those losses exceeds the total of those gains, the company has a notional net capital loss for the period, equal to the excess.

 (3) If the company has a *notional net capital loss for none of the periods in the income year, this Subdivision has no further application, and the company's *net capital gain for the income year is calculated in the usual way.

The usual way of working out the net capital gain is set out in section 102‑5.

Trust's capital gain attributed to company beneficiary

 (4) If some or all (the attributable amount) of an amount included in the company's assessable income for the income year under:

 (a) section 97 (Beneficiary of a trust estate who is not under a legal disability) of the Income