Document ID: chunk:federal_register_of_legislation:C2025C00014:section:431:p2
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 431 (pt 2/2)
Character Range: 2033098–2035286

period and of a prior statutory accounting period, the eligible CFC was a resident of the same country; and
 (b) the country was either:
 (i) a listed country at the end of the eligible period and an unlisted country at the end of that statutory accounting period; or
 (ii) an unlisted country at the end of the eligible period and a listed country at the end of that statutory accounting period;
subsection (4) does not prevent a loss for that statutory accounting period, or an earlier statutory accounting period, from being taken into account under subsection (2).
 (4B) If:
 (a) the eligible CFC is a resident of an unlisted country at the end of the eligible period; and
 (b) that country emerged from the dissolution of another country; and
 (c) the other country was in existence at the end of a prior statutory accounting period; and
 (d) at the end of that statutory accounting period, the CFC was a resident of the other country; and
 (e) the other country was a listed country at the end of that statutory accounting period;
subsection (4) does not prevent a loss for that statutory accounting period, or an earlier statutory accounting period, from being taken into account under subsection (2).
 (4D) If:
 (a) as a result of the operation of subsection (4), a loss of a CFC for a statutory accounting period was not taken into account under subsection (2) in calculating the attributable income of the CFC for a later statutory accounting period (the second statutory accounting period); and
 (b) the eligible period is later than the second statutory accounting period;
then, despite anything in subsection (4), (4A) or (4B), the loss is not to be taken into account under subsection (2) in calculating the attributable income of the CFC for the eligible period.
 (5) A loss for a statutory accounting period is not to be taken into account under subsection (2) if, assuming that it were a tax loss (within the meaning of the Income Tax Assessment Act 1997) of the eligible CFC, it would not be taken into account or allowed as a deduction in relation to the eligible period.

Division 8—Active income test

Subdivision A—Basic conditions for passing the active income test