Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:13_1:p3
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 13 cl 1 (pt 3/10)
Character Range: 227888–231069

required the *same business test to be applied to the *business the focal company carried on just before the time described in subsection (2) of this section.

Same business test for focal company to transfer loss

 (4) If subsection 707‑125(4) is relevant to working out whether the focal company can transfer the loss to a company under Subdivision 707‑A, that subsection:
 (a) has effect as if subsection 707‑125(5) described the focal company's income year containing the time at which the focal company is taken under subsection (2) of this section to fail to meet a condition in section 165‑12; and
 (b) has effect despite subsection (3) of this section.

Note: For working out whether certain losses can be transferred under Subdivision 707‑A, subsection 707‑125(4) modifies the operation of subsection 166‑5(5) by extending the same business test period to include the income year described in subsection 707‑125(5).

719‑265  What is the test company?

 (1) To identify for the purposes of section 719‑260 the company that is the test company for the focal company for the loss:
 (a) first, identify the test company for the focal company by applying whichever one of subsections (2), (3), (4) and (6) is relevant; and
 (b) then, if the condition in column 1 of an item of the table is met, apply this section again to identify the test company as if the company described in column 2 of the item were the focal company, taking account only of things that happened before the event described in column 3 of the item.

Repeated application of this section
                                      Column 1                                                                                 Column 2                                                             Column 3
                                      If the test company for the focal company is identified:                                 Apply this section again as if this company were the focal company:  Take account only of things that happened before this event:
  1                                   Under subsection (2) as the company that is the test company for the transferor          The transferor mentioned in subsection (2)                           The transfer mentioned in subsection (2)
  2                                   Under subsection (6) as the company that is the test company for the first head company  The first head company mentioned in subsection (6)                   The first head company ceasing to be the *head company of the *MEC group mentioned in subsection (6)

Note: More than 2 applications of this section may be needed to identify the test company for the focal company.

COT transfer of loss to focal company

 (2) The test company for the focal company is the company described in column 2 of the relevant item of the table if the focal company made the loss because of a *COT transfer to the focal company.

Test company for the focal company
                                    Column 1                                                      Column 2
                                    If:                                                           The test company for the