Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:1_79:p23
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 1 cl 79 (pt 23/25)
Character Range: 87928–90546

*test period, and other shares (each of which is also called an old share) in the company of which the stakeholder or entity is the holder at the start of that period, are consolidated into a new share during that period; and
 (b) the stakeholder or entity becomes the holder of the new share immediately after the consolidation takes place;
the new share is taken to be exactly the same share as the old shares.

What happens in case of consolidation of units in a unit trust

 (6) If:
 (a) a particular unit (an old unit) in a unit trust of which the stakeholder, or an entity interposed between the stakeholder and the tested company, is the holder at the start of the *test period and other units (each of which is also called an old unit) in the trust of which the stakeholder or entity is the holder at the start of that period are consolidated into a new unit during that period; and
 (b) the stakeholder or entity becomes the holder of the new unit immediately after the consolidation takes place;
the new unit is taken to be exactly the same unit as the old units.

Totals of shares or rights not affected

 (7) This section does not affect how *shares, and rights carried by shares, are counted for the purpose of determining:
 (a) the total voting power in the tested company; or
 (b) the total dividends that the tested company may pay; or
 (c) the total distributions of capital of the tested company.

Conditions in section 166‑145 may be treated as having been satisfied in certain circumstances

 (8) If any of the conditions in section 166‑145 have not been satisfied, those conditions are taken to have been satisfied if:
 (a) they would have been satisfied except for the operation of subsection (2) of this section; and
 (b) the tested company has information from which it would be reasonable to conclude that less than 50% of:
 (i) the *tax loss; or
 (ii) the *notional loss; or
 (iii) the bad debt; or
 (iv) the unrealised net loss (within the meaning of section 165‑115E);
  as the case requires, has been reflected in deductions, capital losses, or reduced assessable income, that occurred, or could occur in future, because of the happening of any *CGT event in relation to any direct or indirect equity interests held in the tested company by the stakeholder, or an entity interposed between the stakeholder and the tested company, during the *test period.

Note: See subsection (11) for the definitions of direct equity interests and indirect equity interests.

Subsection (8) not to apply for purpose of determining whether an alteration time has occurred

 (9) However, subsection (8)