Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p28
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 28/53)
Character Range: 2982126–2985125

reduced by this Subdivision ($600).
 The net capital loss in Beta Co is not duplicated on the sale of Alpha Co's shares in Beta Co.
Step 5. There are no notice requirements in this simple case. If Gamma Co and Alpha Co were associates (so that Gamma Co had a relevant equity interest in Beta Co), Alpha Co would need to provide the following information to Gamma Co:
(a) the alteration time: 6 February 2000;
(b) Beta Co's overall loss at the alteration time: $500;
(c) details of the overall loss: a net capital loss of $500 for the 1998‑99 income year.

Table of sections

Operative provisions
165‑115J Object of Subdivision
165‑115K Application and interpretation
165‑115L Alteration time—alteration in ownership of company
165‑115M Alteration time—alteration in control of company
165‑115N Alteration time—declaration by liquidator or administrator
165‑115P Notional alteration time—disposal of interests in company within 12 months before alteration time
165‑115Q Notional alteration time—disposal of interests in company earlier than 12 months before alteration time
165‑115R When company is a loss company at first or only alteration time in income year
165‑115S When company is a loss company at second or later alteration time in income year
165‑115T Reduction of certain amounts included in company's overall loss at alteration time
165‑115U Adjusted unrealised loss
165‑115V Notional losses
165‑115W Calculation of trading stock decrease
165‑115X Relevant equity interest
165‑115Y Relevant debt interest
165‑115Z What constitutes a controlling stake in a company
165‑115ZAReductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165‑115ZBAdjustment amounts for the purposes of section 165‑115ZA
165‑115ZCNotices to be given
165‑115ZDAdjustment (or further adjustment) for interest realised at a loss after global method has been used

Operative provisions

165‑115J  Object of Subdivision
  The main object of this Subdivision is to make appropriate adjustments (under section 165‑115ZA) to the tax values of significant equity and debt interests held directly or indirectly by entities other than individuals in a *loss company whose ownership or control alters.
The purpose of the adjustments is to prevent the duplication of the company's realised and unrealised losses when any of those interests are *disposed of or otherwise realised. This happens because the company's losses are reflected in the values of the interests.

165‑115K  Application and interpretation

Application
 (1) This Subdivision applies if:
 (a) an alteration time occurs in respect of a company; and
 (b) the company is a *loss company at the alteration time; and
 (c) one or more entities had relevant equity interests or relevant debt interests in the company immediately before the alteration time.
Note 1: For alteration time, see sections 165‑115L, 165‑115M, 165‑115N, 165‑115P and 165‑115Q.
Note 2: For relevant