More rational explanation IMO is that previous incurred tax losses can only be used if the majority of ownership remains at 50% plus 1 share when the nature and business structure change. If this drops below 50% then tax losses can not be used anymore. This is an anti-tax avoidance rule.
EG if company has 40M in tax losses and nature & business structure change and original ownership is reduced to 50% minus one share, the 40M tax losses are lost.
If next year 40 M profit is made, then 30 % tax will need to be paid, if tax losses are available tax will be $0, as previous losses are soaked up first.
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