Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 5/5)
Character Range: 3054510–3056071

company.

Time of happening of CGT event
 (8) The happening of any *CGT event in relation to a *direct equity interest or *indirect equity interest in the company that results in the failure of the company to satisfy a condition in subsection (2), (3) or (4) is taken, for the purposes of paragraph (7)(b), to have occurred during the *ownership test period.

165‑126  Alternatively, the company must satisfy the business continuity test
 (1) This section sets out the condition that a company must meet to be able to deduct a debt or part of a debt that it writes off as bad in the *current year if:
 (a) either:
 (i) the company fails to meet a condition in subsection 165‑123(2), (3) or (4); or
 (ii) it is not practicable to show that the company meets the conditions in those subsections; and
 (b) paragraph 165‑120(1)(b) (about the Commissioner thinking it is unreasonable to require the company to meet the conditions in section 165‑123) does not apply.
Note Other provisions may treat the company as meeting, or failing to meet, the conditions in subsections 165‑123(2), (3) and (4).
 (2) The company must satisfy the *business continuity test for the *second continuity period (the business continuity test period). Apply the test to the *business the company carried on immediately before the time (the test time) shown in the relevant item of the table.

Test time
Item       If:                                                                                                                                                          The test time is: