Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 30/35)
Character Range: 3283443–3286134

find out who they were, apply whichever tests are applied in order to determine (under section 165‑96) whether Subdivision 165‑A would prevent the company from deducting the loss for the current year if it were a *tax loss of the company for that earlier income year.
Note 1: See section 165‑12 (which is about the company maintaining the same owners).
Note 2: Division 167 has special rules for working out rights to voting power, dividends and capital distributions in a company whose shares do not all carry the same rights to those matters.

175‑50  Second case: someone else obtains a tax benefit because of net capital loss available to company
 (1) The Commissioner may *disallow the *excluded loss if:
 (a) a person has obtained or will obtain a tax benefit in connection with a *scheme; and
 (b) the scheme would not have been entered into or carried out if the excluded loss had not been available to be applied in working out the company's *net capital gain for the income year (or for some other income year).
 (2) However, the Commissioner cannot *disallow the *excluded loss if:
 (a) the person had a *shareholding interest in the company at some time during the income year; and
 (b) the Commissioner considers the tax benefit to be fair and reasonable having regard to that shareholding interest.
Note: Section 175‑100 allows the Commissioner to disallow an excluded loss of an insolvent company.
 (3) An expression means the same in this section as in Part IVA of the Income Tax Assessment Act 1936.

Subdivision 175‑CB—Tax benefits from unused capital losses of the current year

Table of sections
175‑55 When Commissioner can disallow capital loss of current year
175‑60 Capital gain injected into company because of available capital loss
175‑65 Capital loss injected into company because of available capital gain
175‑70 Someone else obtains a tax benefit because of capital loss or gain available to company
175‑75 Net capital loss resulting from disallowed capital losses

175‑55  When Commissioner can disallow capital loss of current year
  This Subdivision sets out cases where the Commissioner may prevent a company, in working out its *net capital gain or *net capital loss for an income year, from applying all or part of a *capital loss it made during the income year. This is called disallowing the capital loss or part.

175‑60  Capital gain injected into company because of available capital loss
 (1) The Commissioner may *disallow *capital losses of a company (or parts of them) for an income year if:
 (a) the company has made a *capital gain some or all of which (the injected capital gain) it would not have made if it did not have those capital losses;