Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 4   Amendments relating to pooled development funds Interpretation

8   Interpretation

Section 6 of the Principal Act is amended:

(a) by omitting from subsection (1) the definition of "taxable income" and substituting the following definition:
          

" 'taxable income' means:

(a) except in a case where paragraph (b) or (c) applies - the amount remaining after deducting from the assessable income all allowable deductions; or

(b) in a case where paragraph (c) does not apply and Subdivision B of Division 2A of Part III applies - the amount calculated in accordance with section 50C; or

(c) in a case where:

(i) a company becomes a PDF during the year of income and is still a PDF at the end of the year of income; and

(ii) the PDF component for the year of income is a nil amount;

the amount that, if the period ('the notional year') beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company, would be the taxable income of the notional year because of paragraph (a) or (b), as the case requires;";

(b) by inserting in subsection (1) the following definitions:
          

" 'PDF' (pooled development fund) means a company that is a PDF within the meaning of the Pooled Development Funds Act 1992, but does not include such a company in the capacity of a trustee;

'PDF component', in relation to a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income, means:

(a) in a case where the amount that, if:

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

(ii) the period ('the PDF notional year') beginning when the company becomes a PDF and ending at the end of the year of income were a year of income of the company; and

(iii) paragraph (c) of the definition of 'taxable income' were omitted;

would be the company's taxable income of the PDF notional year is $1 or more - that amount; or

(b) otherwise - a nil amount;".