New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)
Schedule 5 Consolidation: allocable cost amount for a joining trust
Part 2 Consequential amendment
Income Tax Assessment Act 1997
7 Section 705-60 (table item 3)
Repeal the item, substitute:
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3 |
Add to the result of step 2 the step 3 amount worked out under: (a) section 705-90, which is about undistributed, frankable profits accruing to the joined group before the joining time; or (b) if the joining entity is a trust (and not a*corporate tax entity) - section 713-25, which is about undistributed, realised profits accruing to the joined group before the joining time that could be distributed tax free in respect of discretionary interests |
To increase the allocable cost amount: (a) to reflect the undistributed, taxed profits and so prevent double taxation; or (b) if the joining entity is a trust - to reflect the undistributed, realised profits that could be distributed tax free in respect of discretionary interests |