Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_3:p11
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 11/20)
Character Range: 121458–124171

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 would apply to the joining entity for an income year consisting of the *trial year, work out whether the loss is transferred on the basis that:
 (a) subsection 166‑5(4) treated the joining entity as having satisfied the condition in section 165‑13 if the joining entity satisfied the *same business test for the period (the same business test period) consisting of:
 (i) the trial year; and
 (ii) the income year described in subsection (5) of this section, if that income year started before the trial year; and
 (b) subsection 166‑5(5) required the same business test to be applied to the *business that the joining entity carried on at the time (the test time) just before the end of the income year for which the loss was made by the joining entity.

Note: Subdivision 166‑A applies to public listed companies and their 100% subsidiaries unless they choose that Subdivision 165‑A apply to them without the modifications made by Subdivision 166‑A.

 (5) For the purposes of subparagraph (4)(a)(ii), the income year is:
 (a) the income year in which occurred the first time covered by paragraph 166‑5(2)(a) or (b) for which there was no *substantial continuity of ownership of the joining entity as between the start of the *test period and that time; or
 (b) the income year of the joining entity containing the time at which the joining entity is taken under subsection 707‑210(5) to fail to meet the condition in section 165‑12, if that subsection is relevant to working out whether the joining entity can *utilise the loss.

Note 1: Section 707‑205 affects the start of the test period if the joining entity made the loss under a previous operation of this Subdivision.

Note 2: Section 707‑210 is about whether a company can utilise certain losses transferred to it under this Subdivision from a company.

 (6) Subsection (4) of this section has effect despite subsection 707‑210(6).

Note: Subsection 707‑210(6) modifies section 166‑5 for working out whether a company can utilise certain losses transferred to it under this Subdivision from a company.

707‑130  Modified pattern of distributions test

 (1) This section operates for the purpose of working out (under subsection 707‑120(1)) whether the loss is transferred from the joining entity, if section 267‑20 in Schedule 2F to the Income Tax Assessment Act 1936 is relevant for that purpose.

Note 1: That section is relevant if the joining entity has been a non‑fixed trust (as defined in that Schedule) at any time in the