Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_18:p13
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 18 (pt 13/23)
Character Range: 52000–54725

costs of compliance with this Subdivision.

165‑115W  Calculation of trading stock decrease

 (1) The question whether there is a trading stock decrease in relation to a company at an alteration time for a *CGT asset of the company that was an item of *trading stock at that time is worked out in this way.

      Method statement
           Step 1. Work out whether the item's market value immediately before the alteration time was less than:

                (a) if there was no earlier alteration time in the income year in which that alteration time occurred—the item's value under subsection 70‑40(1) at the start of that income year or its cost if subsection 70‑40(2) applies; or
                (b) if there was an earlier alteration time or there were earlier alteration times in that income year—the item's market value immediately before that earlier alteration time or the later or latest of those earlier alteration times, as the case may be, or its cost if the company did not own it at that time.

           Step 2. If the item's market value immediately before the alteration time was less than:

                (a) the item's value or cost referred to in paragraph (a) in step 1; or
                (b) its market value or cost (as applicable) in paragraph (b) in step 1;

            as the case requires, the difference is the trading stock decrease for the item.
            To the extent (if any) to which the difference reflects an amount counted at an earlier alteration time, do not count that amount again.
Note: Certain alteration times are disregarded (see subsections 165‑115K(2) and (4)).

 (2) However, a company does not have a trading stock decrease at an alteration time in respect of an item of *trading stock that it *acquired for less than $10,000.

165‑115X  Relevant equity interest

 (1) An entity (not an individual) has a relevant equity interest in a *loss company at a particular time if:
 (a) at that time the entity has a controlling stake in the loss company (see section 165‑115Z); and
 (b) at that time the entity has an interest (an equity) that gives, or interests (each of which is also called an equity) that between them give, the entity:
 (i) the control of, or the ability to control, 10% or more of the voting power in the loss company (either directly, or indirectly through one or more interposed entities); or
 (ii) the right to receive (either directly, or indirectly through one or more interposed entities) 10% or more of any dividends that the loss company may pay; or
 (iii) the right to receive (either directly, or indirectly through one or more interposed entities) 10% or more of any distribution of capital of the loss company; and
 (c) the equity