INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2A - Calculation of taxable income  

Subdivision B - Calculation of taxable income where disqualifying event occurs  

SECTION 50F   FULL-YEAR DEDUCTIONS AND PARTNERSHIP DEDUCTIONS  

50F(1)   [Full-year deductions]  

For the purposes of this Subdivision, the following deductions are full-year deductions in relation to a company in relation to a year of income:

(a) any deduction allowable to the company in relation to the year of income under section 51 in respect of a bad debt;

(aa) the whole or part of any deduction under section 51 , where that whole or part is, because Subdivision H of Division 3 applies, allowable to the company in relation to the year of income;

(b) if the company is a leasing company, any deduction allowable to the company under Subdivision B or BA of Division 3 in relation to the year of income in respect of a unit of eligible property leased by the company to another person or other persons;

(ba) if the company is a leasing company, any deduction allowable to the company under Part XII , in relation to the year of income, in respect of an item of drought mitigation property leased by the company to another person or other persons;

(c) any deduction allowable to the company under section 63 , 78 , 78B , 79E , 79F , 80 , 80AAA or 80AA or under Division 16C ;

(d) subject to subsection (2), any deduction allowable to the company under Division 10 (other than section 122K ) or under Division 10A A (other than section 124AM ).

50F(2)   [Election by company]  

Where a company has made an election -

(a) in relation to a year of income under section 122D , 122DB , 122DD or 122DF ; or

(b) in relation to a year of income in relation to expenditure of a particular kind under section 122DG , 122J , 122JE , 122JF , 124ADH or 124AH ,

a deduction allowable to the company -

(c) where paragraph (a) applies - under the section referred to in that paragraph; or

(d) where paragraph (b) applies - under the section referred to in that paragraph, or, in the case of an election under section 124ADH , under Division 10AA , in relation to an amount of expenditure of the kind to which the election relates,

in relation to the year of income shall be deemed not to be a full-year deduction in relation to the company in relation to the year of income.

50F(3)   [Application to companies]  

For the purposes of the application of this Subdivision in relation to a company in relation to a year of income -

(a) where -

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and

(iv) for the purposes of section 92 , the partnership had a net income of that year of income of the partnership,

so much of the amount of that full-year partnership deduction or of the sum of the amounts of those full-year partnership deductions, as the case may be, as bears to that amount or sum, as the case may be, the same proportion as the individual interest of the company in that net income bears to the amount of that net income shall be deemed to be a partnership deduction in relation to the company in relation to the year of income;

(b) where -

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and

(iv) for the purposes of section 92 , a partnership loss was incurred by the partnership in that year of income of the partnership,

so much of the amount of that full-year partnership deduction or of the sum of the amounts of those full-year partnership deductions, as the case may be, as bears to that amount or sum, as the case may be, the same proportion as the individual interest of the company in that partnership loss bears to the amount of that partnership loss shall be deemed to be a partnership deduction in relation to the company in relation to the year of income;

(c) where -

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company;

(iii) the period that constitutes that corresponding year of income of the partnership is the same period as the period that constitutes the year of income of the company; and

(iv) for the purposes of section 92 , the partnership did not have a net income of that year of income of the partnership and did not incur a partnership loss in that year of income of the partnership,

so much of the amount of that full-year partnership deduction or of the sum of the amounts of those full-year partnership deductions, as the case may be, as the Commissioner considers fair and reasonable having regard to the extent of the interest of the company in the partnership shall be deemed to be a partnership deduction in relation to the company in relation to the year of income, and

(d) where -

(i) at any time during the year of income the company was a partner in a partnership;

(ii) a full-year partnership deduction has been allowed or is allowable, or full-year partnership deductions have been allowed or are allowable, to the partnership in relation to the year of income of the partnership that corresponds with the year of income of the company; and

(iii) the period that constitutes that corresponding year of income of the partnership is not the same period as the period that constitutes the year of income of the company,

so much of the amount of that full-year partnership deduction or of the sum of the amounts of those full-year partnership deductions, as the case may be, as the Commissioner considers fair and reasonable having regard to all the relevant circumstances shall be deemed to be a partnership deduction in relation to the company in relation to the year of income.

50F(4)   [Full-year partnership deductions]  

For the purposes of this section, the following deductions are full-year partnership deductions in relation to a partnership in relation to a year of income:

(a) any deduction allowable to the partnership under section 78 ;

(b) subject to subsection (5), any deduction allowable to the partnership under Division 10 (other than section 122K ) or under Division 10AA (other than section 124AM ).

50F(5)   [Election by partnership]  

Where a partnership has made an election -

(a) in relation to a year of income under section 122D , 122DB , 122DD or 122DF ; or

(b) in relation to a year of income in relation to expenditure of a particular kind under section 122DG , 122J , 122JE , 122JF , 124ADH or 124AH ,

a deduction allowable to the partnership -

(c) where paragraph (a) applies - under the section referred to in that paragraph; or

(d) where paragraph (b) applies - under the section referred to in that paragraph, or, in the case of an election under section 124ADF , under Division 10AA , in relation to an amount of expenditure of the kind to which the election relates,

in relation to the year of income shall be deemed not to be a full-year partnership deduction in relation to the partnership in relation to the year of income.