Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_6:p2
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 2/6)
Character Range: 586933–589623

fair and reasonable having regard to their respective rights and interests in the company.

 (3) The continuing shareholders are:

 (a) all of the persons who had *more than 50% of the voting power in the company during the whole (or the relevant part) of the earlier income year and during the whole of the income year; and

 (b) all of the persons who had rights to *more than 50% of the company's dividends during the whole (or the relevant part) of the earlier income year and during the whole of the income year; and

 (c) all of the persons who had rights to *more than 50% of the company's capital distributions during the whole (or the relevant part) of the earlier income year and during the whole of the income year.

To find out who they were, apply whichever tests are applied in order to determine (under section 165‑96) whether Subdivision 165‑A would prevent the company from deducting the loss for the current year if it were a *tax loss of the company for that earlier income year.

See section 165‑12 (which is about the company maintaining the same owners).

175‑50  Second case: someone else obtains a tax benefit because of net capital loss available to company

 (1) The Commissioner may *disallow the *excluded loss if:

 (a) a person has obtained or will obtain a tax benefit in connection with a *scheme; and

 (b) the scheme would not have been entered into or carried out if the excluded loss had not been available to be applied in working out the company's *net capital gain or *net capital loss for the income year (or for some other income year).

 (2) However, the Commissioner cannot *disallow the *excluded loss if:

 (a) the person had a *shareholding interest in the company at some time during the income year; and

 (b) the Commissioner considers the tax benefit to be fair and reasonable having regard to that shareholding interest.

 (3) An expression means the same in this section as in Part IVA of the Income Tax Assessment Act 1936.

Subdivision 175‑CB—Tax benefits from unused capital losses of the current year

Table of sections

175‑55 When Commissioner can disallow capital loss of current year
175‑60 Capital gain injected into company because of available capital loss
175‑65 Capital loss injected into company because of available capital gain
175‑70 Someone else obtains a tax benefit because of capital loss or gain available to company
175‑75 Net capital loss resulting from disallowed capital losses

175‑55  When Commissioner can disallow capital loss of current year

  This Subdivision sets out cases where the Commissioner may prevent a company, in working out its *net capital gain or *net capital loss for an