Question
On 1 July 2019, Happy Pty Ltd was owned by the following shareholders: Patrick - 40% Trudy - 25% Bob - 20% Li - 15%
On 1 July 2019, Happy Pty Ltd was owned by the following shareholders:
- Patrick - 40%
- Trudy - 25%
- Bob - 20%
- Li - 15%
On 18 August 2020, Patrick sold his shares in Happy Pty Ltd to a third party.
Does Happy Pty Ltd satisfy the continuity of ownership test when the losses are utilised on 30 June 2021? If the continuity of ownership test is passed, does the entity need to consider the same business test?
Please refer to Australian Tax law. and I need well explained answer.
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Accounting A Smart Approach
Authors: Mary Carey, Jane Towers-Clark, Cathy Knowles
2nd Edition
0199674914, 978-0199674916
