Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p10
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 10/20)
Character Range: 119066–121681

be a *subsidiary member of a *consolidated group, if the joining entity had been a member of a consolidated group before the joining time but was not a *member of a consolidated group just before the joining time; and
 (b) ending just after the joining time.

Same business test involving trial year

 (3) When working out whether the joining entity carried on the same business throughout the *trial year (or a period including the trial year) as it carried on at a particular time, assume that the entity carried on at and just after the joining time the same business that it carried on just before the joining time.

Transfer of loss for income year overlapping trial year

 (4) If the loss was made by the joining entity for an income year all or part of which occurs in the *trial year, the transfer of the loss under subsection (1) is not prevented by the fact that the loss was made for that income year.

707‑125  Modified same business test for companies' post‑1999 losses

 (1) This section operates if:
 (a) the joining entity made the loss for an income year starting after 30 June 1999; and
 (b) subsection 165‑13(3), 165‑15(2) or (3) or 166‑5(4) or (5) is relevant to working out (under subsection 707‑120(1)) whether the loss is transferred from the joining entity.

 (2) Work out whether the loss is transferred on the basis that subsection 165‑13(3) required the joining entity to satisfy the *same business test for:
 (a) the period (the same business test period) consisting of:
 (i) the *trial year; and
 (ii) the income year in which the continuity period ended, if that income year started before the trial year; and
 (b) the time (the test time) just before the end of the income year for which the loss was made by the joining entity.

Note: Subsection 165‑13(2) explains what the continuity period is. Subdivision 707‑B may affect the period for a loss made by the joining entity because of a previous transfer under this Subdivision.

 (3) Work out whether the loss is transferred on the basis that:
 (a) subsection 165‑15(2) specified that the period (the same business test period) for the *same business test consisted of:
 (i) the *trial year; and
 (ii) the income year in which the person began to control, or became able to control, the voting power in the company, if that income year started before the trial year; and
 (b) subsection 165‑15(3) required the same business test to be applied to the company's business immediately before the time (the test time) just before the end of the income year for which the loss was made by the joining entity.

 (4) If Subdivision 166‑A