Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 21/46)
Character Range: 3105379–3107967

the day it lodges its *income tax return for the income year, or before a later day if the Commissioner allows.

Subdivision 166‑B—Working out the taxable income, tax loss, net capital gain and net capital loss for the income year of the change

Table of sections
166‑20 How Subdivisions 165‑B and 165‑CB apply to a widely held or eligible Division 166 company
166‑25 How to work out the taxable income, tax loss, net capital gain and net capital loss
166‑35 Companies can choose that this Subdivision is not to apply to them

166‑20  How Subdivisions 165‑B and 165‑CB apply to a widely held or eligible Division 166 company
 (1) This Subdivision modifies how Subdivisions 165‑B and 165‑CB apply to a company that is:
 (a) a *widely held company at all times during the income year (the test period); or
 (b) an *eligible Division 166 company at all times during the income year (the test period); or
 (c) a widely held company for a part of the income year and an eligible Division 166 company for the rest of the income year (the whole year being the test period).
Note 1: Subdivision 165‑B is about when a company must calculate its taxable income and tax loss for the income year in a special way. Subdivision 165‑CB is about when a company must calculate its net capital gain and net capital loss for the income year in a special way.
Note 2: A company can choose that this Subdivision is not to apply to it: see section 166‑35.
Note 3: See section 165‑255 for the rule about incomplete test periods.

No corporate change etc.
 (2) If:
 (a) no *corporate change in the company *ends at any time in the *test period; or
 (b) a corporate change in the company *ends during the test period, but there is *substantial continuity of ownership as between the start of the test period and immediately after the corporate change ends;
the company is taken to have met the condition in paragraph 165‑35(a) (which is about there being persons having *more than a 50% stake in it during the whole of the income year).
Note: See sections 166‑145 and 166‑175 to work out whether there is substantial continuity of ownership and a corporate change.

Corporate change
 (3) If:
 (a) a *corporate change in the company *ends at any time in the *test period; and
 (b) there is no *substantial continuity of ownership as between the start of the test period and immediately after the corporate change ends;
then the company is taken to have failed to meet the condition in paragraph 165‑35(a).

Satisfies the business continuity test
 (4) However, if the company satisfies the *business continuity test