Document ID: chunk:federal_register_of_legislation:C2010C00622:clause:10_37:p3
Version: federal_register_of_legislation:C2010C00622
Segment Type: clause
Provision Reference: sch 10 cl 37 (pt 3/7)
Character Range: 117793–120462

fixed entitlement to a share of the income or capital of the company, section 267‑60 of Schedule 2F to the Income Tax Assessment Act 1936 does not require the non‑fixed trust to work out its net income and *tax loss for the income year under Division 268.

165‑225  Special way of dividing the income year under Subdivision 165‑B

  If:
 (a) the company is required to calculate:
 (i) its taxable income and *tax loss for the income year under Subdivision 165‑B; and
 (ii) its *net capital gain and *net capital loss for the income year under Subdivision 165‑CB; and
 (b) the company meets the requirements of subsections 165‑220(2) and (4);
section 165‑45 is replaced by the following section:

165‑45  First, divide the income year into periods

 (1) Divide the income year into periods as follows.

 (2) The first period starts at the start of the income year. Each later period starts immediately after the end of the previous period.

 (3) The last period ends at the end of the income year. Each period (except the last) ends at the earliest of:
 (a) the latest time that would result in the persons holding fixed entitlements to shares of the income or shares of the capital of:
 (i) if the company meets the requirements of paragraph 165‑220(2)(a)—the company; or
 (ii) if the company meets the requirements of paragraph 165‑220(2)(b)—the holding entity mentioned in that paragraph;
  and the percentages of the shares that they hold, remaining the same during the whole of the period; and
 (b) the times that, for all of the non‑fixed trusts, other than excepted trusts, holding directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year, are the latest times that would result in individuals having more than a 50% stake in their income or capital; and
 (c) the earliest time in the period when a group begins to control a non‑fixed trust, other than an excepted trust, that holds directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year.

165‑230  Special alternative to change of ownership test for Subdivision 165‑C

 (1) If a company does not meet the conditions in section 165‑123, it is nevertheless taken to meet the conditions if it meets the conditions in this section.

First condition

 (2) At all times during the *first continuity period and the *second continuity period (both within the meaning of subsection 165‑120(2)):
 (a) both:
 (i) persons must have held fixed entitlements to all of the income and capital of the company; and
 (ii) non‑fixed trusts, other than *family trusts, must have held