Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p42
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 42/66)
Character Range: 6430690–6434231

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 focal company is:
  1                                 The focal company and the transferor are the same company     The focal company
  2                                 The focal company and the transferor are different companies  The company that is the test company for the transferor

Loss transferred because business continuity test satisfied
 (3) 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 the loss was transferred under Subdivision 707‑A to the focal company from a company because it satisfied the *business continuity test for:
 (a) the *business continuity test period; and
 (b) the *test time specified in Division 165 or 166 or section 707‑125.

Test company for the focal company
                                    Column 1                                                                                 Column 2
                                    If:                                                                                      The test company for the focal company is:
  1                                 The focal company was the *head company of a *MEC group at the time of the transfer      The company that was the *top company for the MEC group at the time of the transfer
  2                                 The focal company was not the *head company of a *MEC group at the time of the transfer  The focal company

Transfer of tax loss from designated infrastructure project entity
 (3A) If:
 (a) the focal company made the loss because the loss was transferred under Subdivision 707‑A to the focal company as the *head company of a *MEC group; and
 (b) subsection 707‑120(5) (about designated infrastructure project entities joining consolidated groups) applies to the transfer;
the test company for the focal company is the company that was the *top company for the MEC group at the time of a transfer.

Loss not transferred from a company
 (4) 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 apart from a transfer of the loss under Subdivision 707‑A from a company.

Test company for the focal company
                                    Column 1                                                                                                                                                                          Column 2
                                    If:                                                                                                                                                                               The test company for the focal company is:
  1                                 The focal company made the loss apart from Subdivision 707‑A and was the *head company of a *MEC group at the start of the income year for which