Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 20/53)
Character Range: 2963125–2965715

*capital loss, becoming entitled to a deduction or making a *trading stock loss, in respect of an asset, is the amount worked out using the following formula:
where:
previous capital losses, deductions or trading stock losses means the total of the following:
 (a) capital losses that the company made, deductions to which the company became entitled, or *trading stock losses that the company made, as a result of events earlier than the relevant event in respect of assets that the company owned at the *changeover time;
 (b) each reduction that section 715‑105 (as applying to the company as the *head company of a *consolidated group or *MEC group) makes in respect of such an asset because an entity ceased before the time of the relevant event to be a *subsidiary member of the group (but counting only the greater or greatest such reduction if 2 or more are made for the same asset);
or nil if there are none.
unrealised net loss means the company's unrealised net loss at the last changeover time that occurred before the relevant event.
Note: For changeover time see sections 165‑115C and 165‑115D.

165‑115C  Changeover time—change in ownership of company
 (1) A time (the test time) is a changeover time in respect of a company if:
 (a) persons who had *more than 50% of the voting power in the company at the reference time do not have more than 50% of that voting power immediately after the test time; or
 (b) persons who had rights to *more than 50% of the company's dividends at the reference time do not have rights to more than 50% of those dividends immediately after the test time; or
 (c) persons who had rights to *more than 50% of the company's capital distributions at the reference time do not have rights to more than 50% of those distributions immediately after the test time.
Note 1: See section 165‑150 to work out who had more than 50% of the voting power in the company.
Note 2: See section 165‑155 to work out who had rights to more than 50% of the company's dividends.
Note 3: See section 165‑160 to work out who had rights to more than 50% of the company's capital distributions.
Note 4: For reference time see subsection 165‑115A(2A).
Note 5: 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.
 (2) To work out whether paragraph (1)(a), (b) or (c) applied at a particular time, apply the primary test unless subsection (3) requires the alternative test to be applied.
Note: For the primary test see subsections 165‑150(1),