Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.
(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 same business test
(4) However, if the company satisfies the * same business test for the rest of the income year (the same business test period ) after the first time (the test time ) in the * test period that a * corporate change in the company * ended, the company is taken to have satisfied the condition in paragraph 165-35(b).
Note 1: For the same business test, see Subdivision 165-E.
Note 2: See section 165- 255 for the rule about incomplete test periods.
(5) Apply the * same business test to the * business that the company carried on immediately before the * test time.