Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_15:p1
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 1/4)
Character Range: 13729–16397

15  Sections 165‑115C and 165‑115D
Repeal the sections, substitute:

165‑115BA  What happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock

Application

 (1) This section applies to the company if, after the changeover time, the company makes a *trading stock loss in respect of an item of *trading stock as mentioned in subparagraph 165‑115A(1)(c)(ii).

Where trading stock loss is equal to or less than residual unrealised net loss

 (2) If the *trading stock loss is equal to or less than the company's residual unrealised net loss at the time of the occurrence of the trading stock loss, the amount of the trading stock loss is to be included in the company's assessable income.

Where trading stock loss is greater than unrealised net loss

 (3) If the *trading stock loss is greater than the company's residual unrealised net loss at the time of the occurrence of the trading stock loss, the part of the trading stock loss that is equal to the residual unrealised net loss is to be included in the company's assessable income.

No increase in assessable income if company satisfies the same business test

 (4) Neither subsection (2) nor (3) applies to the company if the company meets the conditions in section 165‑13 (the same business test).

Assumptions for purposes of same business test

 (5) In determining whether the company meets the conditions in section 165‑13, assume:
 (a) that the *trading stock loss (if subsection (2) applies) or the part of the trading stock loss (if subsection (3) applies) is a *net capital loss of the company for the income year immediately before the income year in which the changeover time occurred; and
 (b) that the company failed, at the changeover time, to meet the conditions in subsections 165‑12(2), (3) and (4) in relation to the net capital loss referred to in paragraph (a); and
 (c) that the continuity period ended at the changeover time; and
 (d) that the same business test period is the income year in which the loss occurred.

165‑115BB  Order of application of assets: residual unrealised net loss

Order in which assets are to be applied

 (1) In applying subsection 165‑115B(2) or 165‑115BA(3) in respect of assets that the company owned at the changeover time:
 (a) the company's *capital losses are taken to have been made, the company is taken to have become entitled to deductions and the company is taken to have made *trading stock losses in the order in which the events that resulted in the capital losses, deductions or trading stock losses occurred; and
 (b) if 2 or more such events occurred at the same time, they are taken to