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Australia Publishes Draft Guideline on Business Continuity Test for Comment — Orbitax Tax News & Alerts

On 21 July 2017, the Australian Taxation Office published a draft Law Companion Guideline (LCG 2017/D6) on the business continuity test concerning company loss rules introduced in the pending Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017. The new business continuity test maintains the existing same business test, while introducing a new similar business test for the purpose of utilizing tax losses following a change in ownership or control ({News-2017-04-19/P/2-previous coverage}). Pending enactment of the Bill, which is currently before the Senate, the similar business test will apply to income years starting on or after 1 July 2015.

Click the following link for LCG 2017/D6. Comments on the draft should be submitted by 21 August 2017.