Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 2/46)
Character Range: 3059401–3062091

and
 (b) because the company failed to meet a condition in section 165‑123 (about the company maintaining the same owners), it could not have deducted the debt (or part) apart from section 165‑126 (about the company satisfying the business continuity test); and
 (c) the company wrote off the debt after the *test time worked out under section 165‑126; and
 (d) because of the deduction, the company has a *tax loss for that income year, or there was an increase in the amount of its *tax loss for that income year; and
 (e) the company carried on a *business during that income year for the purpose, or for purposes including the purpose, of securing a deduction for the debt (or part) by relying on section 165‑126;
the company cannot deduct the *tax loss for a later income year, or cannot deduct it to the extent of the increase, unless it also satisfies the *business continuity test for the later income year (the business continuity test period).
 (2) Apply the test to the *business that the company carried on immediately before the *test time worked out for section 165‑126.
For the business continuity test: see Subdivision 165‑E.

Subdivision 165‑D—Tests for finding out whether the company has maintained the same owners

Table of sections

The primary and alternative tests
165‑150 Who has more than 50% of the voting power in the company
165‑155 Who has rights to more than 50% of the company's dividends
165‑160 Who has rights to more than 50% of the company's capital distributions
165‑165 Rules about tests for a condition or occurrence of a circumstance
165‑175 Tests can be satisfied by a single person

Rules affecting the operation of the tests
165‑180 Arrangements affecting beneficial ownership of shares
165‑185 Shares treated as not having carried rights
165‑190 Shares treated as always having carried rights
165‑200 Rules do not affect totals of shares, units in unit trusts or rights carried by shares and units
165‑202 Shares held by government entities and charities etc.
165‑203 Companies where no shares have been issued
165‑205 Death of share owner
165‑207 Trustees of family trusts
165‑208 Companies in liquidation etc.
165‑209 Dual listed companies

The primary and alternative tests

165‑150  Who has more than 50% of the voting power in the company

The primary test
 (1) Applying the primary test: if there are persons who, at a particular time, beneficially own (between them) *shares that carry (between them) the right to exercise more than 50% of the voting power in the company, those persons have more than 50% of the voting power in the company at that time.

The alternative test
 (2) Applying the alternative test: if it is the case, or it is