Access to tax losses: How similar is your business?

Jenny Wong explores the a Law Companion Guide that sets out how the Commissioner will apply the new similar business test in accessing tax losses, bad debt deductions and net capital losses.

The Australian Taxation Office (ATO) published Law Companion Guide LCG 2019/1 on 22 May 2019, setting out how the Commissioner will apply the new similar business test in accessing tax losses, bad debt deductions and net capital losses. This follows Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Act 2019 receiving Royal Assent on 1 March 2019. Despite the term ‘similar business’ implying a lesser threshold to satisfy than a ‘same business’, the similar business test does not ...

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Authors: Jenny Wong

Published Date: 06 June 2019