INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 79EA   LOSS OF COMPANY'S FIRST YEAR AS A PDF WHERE TAXABLE INCOME CONSISTS OF PRE-PDF INCOME  

79EA(1)   [Application of section]  

If a company has a taxable income for the 1996-97 year of income or an earlier year of income because of paragraph (c) of the definition of taxable income in subsection 6(1) , this section applies for the purposes of section 79E despite subsections 79E(1) and (2).

Note:

To work out whether a PDF can deduct a tax loss in the 1997-98 year of income or a later year of income: see Subdivision 195-A of the Income Tax Assessment Act 1997 .

79EA(2)   [Losses incurred]  

The company incurs a loss in that year of income equal to the loss (if any) that, if:

(a) the period beginning at the start of that year of income and ending immediately before the company became a PDF were a year of income of the company; and

(b) the period ( ``the PDF notional year'' ) beginning when the company became a PDF and ending at the end of the first-mentioned year of income were a year of income of the company;

the company would be taken because of section 79E to incur in the PDF notional year.