Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 1/5)
Character Range: 3044241–3047268

6                                                                               The difference between:
                                                                                (a) the *capital proceeds (as worked out under subsection (7)) of a *CGT event:
                                                                                (i) that happens, during the period referred to in subsection (6), to a *CGT asset that the company owned at that last alteration time and *acquired for not less than $10,000; and
                                                                                (ii) as a result of which the asset is *acquired by an entity that is an *associate of the company at the time of the CGT event; and
                                                                                (b) the *market value of the asset at the time of the CGT event;
                                                                                but only if those capital proceeds are less than that market value

 (6) The period starts at that last alteration time and ends at the earlier of:
 (a) the time of the *realisation event referred to in paragraph (1)(a); or
 (b) the time immediately before the earliest time when the equity or debt is no longer, or is no longer part of:
 (i) if the company was a *loss company at that last alteration time—a relevant equity interest, or a relevant debt interest, that an entity has in the company; or
 (ii) otherwise—what would have been such an interest if the company had been a loss company at that last alteration time.
 (7) For the purposes of item 6 of the table in subsection (5), the *capital proceeds of the *CGT event are to be worked out:
 (a) under subsection 116‑20(1) only; and
 (b) disregarding subsection 103‑10(1) and paragraph 103‑10(2)(a) (about entitlement to receive money or property).

Notices under section 165‑115ZC not affected
 (8) To avoid doubt:
 (a) a notice need not be given under section 165‑115ZC because of this section; and
 (b) this section does not affect the requirements that apply to a notice that otherwise must be given under that section.

If equity or debt is a revenue asset
 (9) If the equity or debt is a *revenue asset at the time of the *realisation event, subsection (4) applies on the basis that the realised loss is the total of:
 (a) the loss (if any) *realised for income tax purposes by the realisation event happening to the equity or debt in its character as a *CGT asset; and
 (b) the loss (if any) realised for income tax purposes by the realisation event happening to the equity or debt in its character as a revenue asset.

Subdivision 165‑C—Deducting bad debts

Guide to Subdivision 165‑C

165‑117  What this Subdivision is about

      A company cannot deduct a bad debt unless:

                (a) if the debt was incurred in an earlier income year—the company had the same owners and the same control throughout the period from the day on which the debt was incurred to the end of the income year