Merko Pty Ltd $($Merko$)$ is a resident company that was established on $1$ July $2020.$ Merko has provided the following

information about its shareholders and taxable income $($or loss$)$ for three income years:

I

All changes in ownership occurred on $1$ July of the relevant income year. Assume that Merko does not satisfy the

business continuity test.

Required

Advise Merko whether it can offset the tax losses it carried forward from the income years ended $30$ June $2021$

and $2022$ against its taxable income in the income year ended $30$ June $2023.$