Document ID: chunk:federal_register_of_legislation:C2005A00147:clause:1_79:p4
Version: federal_register_of_legislation:C2005A00147
Segment Type: clause
Provision Reference: sch 1 cl 79 (pt 4/25)
Character Range: 42042–44686

in the company *ends during the test period, but there is *substantial continuity of ownership as between the start of the test period and immediately after the corporate change ends;
the company is taken to have met the condition in paragraph 165‑35(a) (which is about there being persons having *more than a 50% stake in it during the whole of the income year).

Note: See sections 166‑145 and 166‑175 to work out whether there is substantial continuity of ownership and a corporate change.

Corporate change

 (3) If:
 (a) a *corporate change in the company *ends at any time in the *test period; and
 (b) there is no *substantial continuity of ownership as between the start of the test period and immediately after the corporate change ends;
then the company is taken to have failed to meet the condition in paragraph 165‑35(a).

Satisfies the same business test

 (4) However, if the company satisfies the *same business test for the rest of the income year (the same business test period) after the first time (the test time) in the *test period that a *corporate change in the company *ended, the company is taken to have satisfied the condition in paragraph 165‑35(b).

Note 1: For the same business test, see Subdivision 165‑E.

Note 2: Companies whose total income for the income year is more than $100 million cannot satisfy the same business test for the rest of the year: see section 165‑212A.

Note 3: See section 165‑255 for the rule about incomplete test periods.

 (5) Apply the *same business test to the *business that the company carried on immediately before the *test time.

166‑25  How to work out the taxable income, tax loss, net capital gain and net capital loss

 (1) If the company must calculate its taxable income and *tax loss for the income year under Subdivision 165‑B, and its *net capital gain and *net capital loss under Subdivision 165‑CB, then, in dividing the income year into periods, apply subsection (2) of this section instead of subsection 165‑45(3).

 (2) The last period ends at the end of the income year. Each period (except the last) ends at the earlier of:
 (a) the earliest time when:
 (i) a *corporate change in the company *ends; and
 (ii) there is no *substantial continuity of ownership of the company as between the start of the *test period and that time; or
 (b) the earliest time when a person begins to control, or becomes able to control, the voting power in the company (whether directly, or indirectly through one or more interposed entities) for the purpose, or for purposes including the purpose, of:
 (i) getting some benefit or advantage to do with how this Act applies; or