Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1992No. 80, 1992 - SECT 29

29. Section 160ZP of the Principal Act is amended by omitting subsection (9)
and substituting the following subsections:

"(9) If:

   (a)  section 50H operates so as to deem a disqualifying event in relation
        to the loss company to have occurred at a time during the loss year;
        and

   (b)  the loss company does not pass the continuity of business test set out
        in subsection (9A) in relation to that time; no part of a net capital
        loss incurred by that company in respect of that year is capable of
        being specified in a notice under paragraph (7)(c).

"(9A) For the purposes of subsection (9), a company passes the continuity of
business test in relation to a time (in this subsection called the 'event
time') during a year of income if, and only if:

   (a)  the company carried on at all times during the year of income the same
        business as it carried on immediately before the event time; and

   (b)  the company did not, at any time during the year of income, derive
        income from:

        (i)    a business of a kind that it did not carry on immediately
               before the event time; or

        (ii)   a transaction of a kind that it had not entered into in the
               course of its business operations before the event time.".