INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1B - Collection of tax on companies and trustees of certain funds  

SECTION 221AL  

221AL   NET CAPITAL GAINS TO BE DISREGARDED IN MAKING CERTAIN CALCULATIONS  
In the making of an estimate for the purpose of calculating the amount of an initial payment of tax to be made by a relevant entity under this Division, a reference in this Division to the income tax that will be or would be payable in respect of the taxable income of the entity of a year of income is, in the case of an entity that is a company whose assessable income of that year of income included a net capital gain within the meaning of Part IIIA , to be taken to be a reference to:

(a) in the case of a company other than a life assurance company or a registered organization - the income tax that would be payable in respect of the amount that would have been the taxable income of that company of that year of income if that net capital gain had not been included; and

(b) in the case of a life assurance company - the sum of:

(i) the income tax that will be payable in respect of the CS/RA component of the company's taxable income of that year of income; and

(ii) in relation to each of the NCS component, the general fund component (if any) and the AD/RLA component of the company's taxable income of that year of income:

(A) if the part of the company's assessable income of that year of income to which that component relates included a net capital gain within the meaning of Part IIIA - the income tax that would be payable in respect of the amount that would have been that component if that net capital gain had not been included; or

(B) otherwise - the income tax that will be payable in respect of that component; and

(c) in the case of a registered organization - the sum of:

(i) the income tax that will be payable in respect of the CS/RA component of the organization's taxable income of that year of income; and

(ii) in relation to each of the NCS component, the RSA combined component (if any) and the EIB component of the organisation's taxable income of that year of income:

(A) if the part of the organization's assessable income of that year of income to which that component relates included a net capital gain within the meaning of Part IIIA - the income tax that would be payable in respect of the amount that would have been that component if that net capital gain had not been included; or

(B) otherwise - the income tax that will be payable in respect of that component.