Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_2:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/7)
Character Range: 556668–559438

For the primary test: see subsections 165‑150(1), 165‑155(1)
 and 165‑160(1).

When to apply the alternative test

 (5) Apply the alternative test for that condition if one or more other companies beneficially owned *shares, or interests in shares, in the company at any time during the *first continuity period or the *second continuity period.

For the alternative test: see subsections 165‑150(2), 165‑155(2)
 and 165‑160(2).

Applying the tests for the purposes of this Subdivision

 (6) In applying a test for the purposes of this Subdivision, subsection 165‑180(2) and sections 165‑185 and 165‑190 have effect as if they referred to the *second continuity period instead of the income year.

165‑126  Alternatively, company must carry on same business

 (1) If the company fails to meet a condition in section 165‑123 (which is about the company maintaining the same owners), it can instead meet the conditions in this section.

 (2) There must be some period (the minimum continuity period) that satisfies these conditions:

 (a) it must start at the start of the *first continuity period (and end before, at or after the end of that period);

 (b) if the minimum continuity period were the first continuity period, each of the conditions in section 165‑123 about the first continuity period would be satisfied.

 (3) The company must satisfy the *same business test for the *second continuity period (the same business test period). Apply the test to the *business that the company carried on immediately before the time (the test time) when the *minimum continuity period ends.

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

165‑129  Same people must control the voting power, or company must carry on same business

 (1) Even if section 165‑120 does not prevent a company from deducting a bad debt (or part of one), it cannot deduct the bad debt (or that part of it) if:

 (a) for some or all of the *second continuity period, a person controlled, or was able to control, the voting power in the company (whether directly, or indirectly through one or more interposed entities); and

 (b) for some or all of the *first continuity period, that person did not control, and was not able to control, that voting power (directly, or indirectly in that way); and

 (c) that person began to control, or became able to control, that voting power (directly, or indirectly in that way) for the purpose of:

 (i) getting some benefit or advantage in relation to how this Act applies; or

 (ii) getting 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