Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 21/35)
Character Range: 3261898–3264549

or indirectly through one or more interposed entities) more than 50% of any distribution of capital of the company.
Note: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.
 (3) If:
 (a) apart from this subsection, an interest that gives an entity and its *associates (if any):
 (i) the ability to exercise, or control the exercise of, any of the voting power in a company; or
 (ii) the right to receive dividends that a company may pay; or
 (iii) the right to receive a distribution of capital of a company;
  would, in the application of paragraph (2)(a), (b) or (c), be counted more than once; and
 (b) the interest is both direct and indirect;
only the direct interest is to be counted.

170‑270  Immediate consequences for originating company
 (1) If, apart from this Subdivision:
 (a) the originating company would have made a *capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision) as a result of the deferral event; or
 (b) the originating company would have become entitled to a deduction in respect of the deferral event; or
 (c) where the originating company is a partner in a partnership—the partnership would have become entitled to a deduction in respect of the deferral event;
the capital loss, the deduction or the partner's share of the deduction, as the case may be, is disregarded.
 (2) To avoid doubt, the amount of the *capital loss, deduction, or partnership deduction, referred to in this section is:
 (a) the amount remaining after applying Division 723 or section 727‑615; or
 (b) nil, if none of the amount remains after applying that section or Division.
Note: Division 723 and section 727‑615 reduce a loss realised for income tax purposes by a realisation event happening to a non‑depreciating asset (in the case of Division 723) or an affected interest in a losing entity under an indirect value shift (in the case of section 727‑615).

170‑275  Subsequent consequences for originating company
 (1) If, at a time after the deferral event, any one or more of the following events (the new events) happens:
 (a) the *CGT asset *acquired by the other entity referred to in paragraph 170‑255(1)(a) (the relevant CGT asset), or a greater than 50% interest in it, ceases to exist;
 (b) the relevant CGT asset, or a greater than 50% interest in it, is acquired by an entity that is none of the following:
 (i) a member of the *linked group of which the originating company is a member;
 (ii) a connected entity of the originating