Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:13_1:p2
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 13 cl 1 (pt 2/10)
Character Range: 225455–228133

out whether the focal company can *utilise the loss for the claim year.

Note: Section 707‑210 is about whether a company can utilise a loss it made because the loss was transferred to it under Subdivision 707‑A because the transferor met the conditions in section 165‑12.

719‑260  Special test for utilising a loss because a company maintains the same owners

Meeting the conditions in section 165‑12

 (1) The focal company is taken to meet the conditions in section 165‑12 for the claim year and the loss if and only if the company (the test company) identified in relation to the focal company in accordance with section 719‑265 would have met those conditions for that year on the relevant assumptions in:
 (a) section 719‑270 (which is about assuming the test company made the loss for a particular income year); and
 (b) section 719‑275 (which is about assuming that nothing happened in relation to certain things that would affect whether the test company would meet those conditions); and
 (c) section 719‑280 (which is about assuming that the test company would have failed to meet those conditions in certain circumstances).

Focal company's failure to meet conditions in section 165‑12

 (2) The focal company is taken to fail to meet a condition in section 165‑12 only at:
 (a) the first time the test company would have failed to meet the condition on the relevant assumptions mentioned in subsection (1); or
 (b) the *test time described in subsection 166‑5(5) for the test company, if:
 (i) Division 166 is relevant to working out whether the test company could have *utilised the loss for the claim year on the relevant assumptions mentioned in paragraphs (1)(a) and (b); and
 (ii) the test company is not assumed under section 719‑280 to fail to meet the condition before the test time.

Note: If the focal company is taken to fail to meet a condition in section 165‑12, the focal company will not be able to utilise the loss for the claim year unless the focal company meets the conditions in section 165‑13 by satisfying the same business test. That test applies to the focal company (and not the test company).

Same business test for focal company under Division 166

 (3) If subsection 166‑5(4) affects whether the focal company can *utilise the loss for the claim year because the focal company is a *listed public company or a *100% subsidiary of one for the year, subsection 166‑5(5) operates as if it required the *same business test to be applied to the *business the focal company carried on just before the time described in subsection (2) of this section.

Same business test for focal company to transfer loss

 (4) If subsection 707‑125(4)