Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-B - Working out the taxable income and tax loss for the income year of the change  

Special rules that apply if the company is in partnership

SECTION 165-75   How to calculate the company's notional loss or notional taxable income for a period when the company was a partner  

165-75(1)    
This section applies if at any time during a period the company was a partner in one or more partnerships.

165-75(2)    
The company has a *notional loss for the period if the total (the loss total ) of:

(a) the deductions attributed to the period under section 165-55; and

(b) the *company's share of each *notional loss (if any) of a partnership for the period;

exceeds the total (the income total ) of:

(c) the assessable income attributed to the period under section 165-60; and

(d) the *company's share of each *notional net income (if any) of a partnership for the period.

The notional loss is the amount of the excess.

Note:

A notional loss is taken into account in working out the company's tax loss under section 165-70 .

165-75(3)    
On the other hand, if the income total exceeds the loss total, the company has a notional taxable income for the period, equal to the excess.

Note:

A notional taxable income is taken into account in working out the company's taxable income under section 165-65 .

165-75(4)    
If the company has a *notional taxable income for all periods in the income year, this Subdivision has no further application, and the company's taxable income for the income year is calculated in the usual way.

Note:

The usual way of working out taxable income is set out in section 4-15 .