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 165-90   Company's full year deductions include a share of partnership's full year deductions  

165-90(1)    
This section applies if at any time during the income year the company is a partner in a partnership that has one or more *full year deductions for the income year of the partnership that corresponds to the income year of the company.

165-90(2)    
The partnership's *full year deductions are treated as full year deductions of the company, but only to the extent of the *company's share.

165-90(3)    
If the partnership's income year is the same as the company's, the company's share is calculated by dividing:

  • • the company's interest in the partnership's net income or partnership loss of the income year;

    • by

  • • the amount of that net income or partnership loss;

    • and expressing the result as a percentage.


    165-90(4)    
    However, if the partnership had neither a net income nor a partnership loss, the company's share is a percentage that is fair and reasonable having regard to the extent of the company's interest in the partnership.

    165-90(5)    
    If the partnership's income year does not start and end at the same time as the company's income year, the company's share is a percentage that is fair and reasonable having regard to all relevant circumstances.

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.