INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 7 - Private companies  

SECTION 105B   RETENTION ALLOWANCE  

105B(1)   [Distributable income pre-1/7/86]  

The retention allowance of a private company in respect of its distributable income of a year of income preceding the year of income commencing on 1 July 1986 is the aggregate of -

(a) 80% of the reduced distributable income; and

(b) 10% of so much of any income of the company (other than dividends received from other private companies) derived from property as is included in the distributable income.

105B(2)   [Distributable income post-30/6/86]  

The retention allowance of a private company in respect of its distributable income of the year of income commencing on 1 July 1986 or of a subsequent year of income is the distributable income reduced by the amount of phasing-out dividends included in that distributable income.