Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 22/46)
Character Range: 3107707–3110400

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 business continuity test
 (4) However, if the company satisfies the *business continuity test for the rest of the income year (the business continuity 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 business continuity test, see Subdivision 165‑E.
Note 2: See section 165‑255 for the rule about incomplete test periods.
 (5) Apply the *business continuity 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
 (ii) getting such a benefit or advantage for someone else.
Note: See sections 166‑145 and 166‑175 to work out whether there is substantial continuity of ownership and a corporate change.

166‑35  Companies can choose that this Subdivision is not to apply to them
 (1) The company can choose that Subdivisions 165‑B and 165‑CB are to apply to it for the income year without the modifications made by this Subdivision.
 (2) The company must choose on or before the day it lodges its *income tax return for the income year, or before a later day if the Commissioner allows.

Subdivision 166‑C—Deducting bad debts

Table of sections
166‑40 How Subdivision 165‑C applies to a widely held or eligible Division 166 company
166‑50 Companies can choose that this Subdivision is not to apply to them

166‑40  How Subdivision 165‑C applies to a widely held or eligible Division 166 company