Q: My client had to pause their company's operations for over a year due to other work commitments, which led to their Australian Business Number (ABN) being cancelled and no tax returns filed during that time. Now, the company's back in business as usual, with no changes. Can they still use the losses from that pause in future years?
A: Yes, they can carry forward losses if they meet either the "same business" test or the "continuity of ownership" test. Even if they don't meet the "same business" test, they might meet the "continuity of ownership" test if more than half of the shareholders haven't changed since the losses occurred. So, they should be able to use those losses in the future.
If you have any questions, feel free to contact Tax Ideas Accountants & Advisers. You can also book an appointment through our live calendar.
