Until recently, a company that had experienced a significant change in ownership or control could only carry forward its earlier tax losses to a later income year if the company carried on the “same” business after the change. However, a new alternative test that applies retrospectively from 1 July 2015 means that now companies only need to carry on a “similar” business. What exactly does “similar” mean? The legislation outlines several factors you must consider when assessing whether your business is “similar”. This is a non-exhaustive list, and it requires a weighing-up of all relevant factors. The ATO unpacks … Continue reading Using prior tax losses after a change in control: ATO guidance