Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:1_79:p5
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 1 cl 79 (pt 5/25)
Character Range: 44446–47093

the voting power in the company (whether directly, or indirectly through one or more interposed entities) for the purpose, or for purposes including the purpose, of:
 (i) getting some benefit or advantage to do with how this Act applies; or
 (ii) getting such a benefit or advantage for someone else.

Note: See sections 166‑145 and 166‑175 to work out whether there is substantial continuity of ownership and a corporate change.

166‑35  Companies can choose that this Subdivision is not to apply to them

 (1) The company can choose that Subdivisions 165‑B and 165‑CB are to apply to it for the income year without the modifications made by this Subdivision.

 (2) The company must choose on or before the day it lodges its *income tax return for the income year, or before a later day if the Commissioner allows.

Subdivision 166‑C—Deducting bad debts

Table of sections

166‑40 How Subdivision 165‑C applies to a widely held or eligible Division 166 company
166‑50 Companies can choose that this Subdivision is not to apply to them

166‑40  How Subdivision 165‑C applies to a widely held or eligible Division 166 company

 (1) This Subdivision modifies the way Subdivision 165‑C applies to a company that is:
 (a) a *widely held company at all times during the *current year; or
 (b) an *eligible Division 166 company at all times during the current year; or
 (c) a widely held company for a part of the current year and an eligible Division 166 company for the rest of the current year.

Note 1: Subdivision 165‑C is about the conditions a company must meet before it can deduct a bad debt.

Note 2: A company can choose that this Subdivision is not to apply to it: see section 166‑50.

Note 3: See section 165‑255 for the rule about incomplete current years.

Meaning of test period

 (2) The company's test period is the period:
 (a) that begins at whichever of the following times the company chooses:
 (i) the start of the income year in which the debt was incurred;
 (ii) the start of the *first continuity period; and
 (b) that ends at the end of the *second continuity period;
and includes any intervening period.

Note: See section 165‑255 for the rule about incomplete test periods.

Substantial continuity of ownership

 (3) The company is taken to have met the conditions in section 165‑123 (about the company maintaining the same owners) if there is *substantial continuity of ownership of the company as between the start of the *test period and:
 (a) the end of each income year in that period; and
 (b) the *end of each *corporate change in that period.

Note: See sections 166‑145 and 166‑175 to work out whether there is