Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p45
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 45/53)
Character Range: 3022324–3024941

subsection, an interest that gives an entity and its *associates (if any):
 (i) the ability to exercise, or control the exercise of, any of the voting power in a company; or
 (ii) the right to receive dividends that a company may pay; or
 (iii) the right to receive a distribution of capital of a company;
  would, in the application of paragraph (1)(a), (b) or (c), be counted more than once; and
 (b) the interest is both direct and indirect;
only the direct interest is to be counted.

165‑115ZA  Reductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time

Application of section
 (1) This section applies to an entity (an affected entity) that has a relevant equity interest or a relevant debt interest, or both, in a *loss company immediately before a time (a relevant time) that is an alteration time in respect of the loss company.
Note: This section and section 165‑115ZB can apply differently for a company that has used the global method of working out whether it has an adjusted unrealised loss at an alteration time. See section 165‑115ZD.

Application of section nullified in certain circumstances
 (2) However, if:
 (a) this section has applied to an entity in respect of a debt owed to the entity; and
 (b) Subdivisions 245‑C to 245‑G (which relate to the forgiveness of commercial debts) also applied in respect of the debt at the same time or at a later time;
any reductions or other consequences affecting the entity in respect of the debt under this section are taken not to have occurred or to have been required to occur.
Note: An amendment of an assessment can be made at any time to give effect to this subsection (see subsection 170(10AA) of the Income Tax Assessment Act 1936).

Reduction of reduced cost base
 (3) The *reduced cost base of an equity or debt that was *acquired on or after 20 September 1985 is to be reduced immediately before the relevant time by the adjustment amount calculated under section 165‑115ZB.

Reduction of deduction—equity or debt is not trading stock
 (4) If an equity or debt is not an item of *trading stock of the affected entity immediately before the relevant time, any amount that the entity can deduct in respect of the disposal of any of the equity or debt is to be reduced by the adjustment amount calculated under section 165‑115ZB.

Reduction of cost—equity or debt is trading stock
 (5) If:
 (a) an equity or debt is an item of *trading stock of the affected entity immediately before the relevant time; and
 (b) the *cost for the purposes of Division 70 of