(1) The Commissioner may * disallow the * excluded loss if:
(a) a person has obtained or will obtain a tax benefit in connection with a * scheme; and
(b) the scheme would not have been entered into or carried out if the excluded loss had not been available to be applied in working out the company's * net capital gain for the income year (or for some other income year).
(2) However, the Commissioner cannot * disallow the * excluded loss if:
(a) the person had a * shareholding interest in the company at some time during the income year; and
(b) the Commissioner considers the tax benefit to be fair and reasonable having regard to that shareholding interest.
Note: Section 175-100 allows the Commissioner to disallow an excluded loss of an insolvent company.
(3) An expression means the same in this section as in Part IVA of the Income Tax Assessment Act 1936 .
Table of sections
175-55 When Commissioner can disallow capital loss of current year
175-60 Capital gain injected into company because of available capital loss
175-65 Capital loss injected into company because of available capital gain
175-70 Someone else obtains a tax benefit because of capital loss or gain available to company
175-75 Net capital loss resulting from disallowed capital losses