Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-90 - CONSOLIDATED GROUPS  

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Division 716 - Miscellaneous special rules  

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Subdivision 716-A - Assessable income and deductions spread over several membership or non-membership periods  

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Assessable income and deductions arising from share of net income of a partnership or trust, or from share of partnership loss

SECTION 716-85   Entity ' s assessable income and deductions for a non-membership period  

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716-85(1)    
The assessable income of the entity for a part of the income year that is a non-membership period for the purposes of section 701-30 includes the entity ' s share (worked out under section 716-90 ) of each of these:


(a) the total assessable income of the partnership or trust for the income year so far as it is reasonably attributable to the non-membership period;


(b) a proportion (worked under subsection (3) of this section) of the total assessable income of the partnership or trust for the income year so far as it is not reasonably attributable to a particular period within the income year.

Note 1:

Section 701-30 is about working out an entity ' s tax position for a period when it is not a subsidiary member of any consolidated group.

Note 2:

If throughout the income year the entity is not a subsidiary member of any consolidated group or MEC group, this section does not affect the amount referred to in section 716-75 being assessable income of the entity for the income year.


716-85(2)    
For a part of the income year that is a non-membership period for the purposes of section 701-30 , the entity can deduct the entity ' s share (worked out under section 716-90 ) of each of these:


(a) the total deductions of the partnership or trust for the income year so far as they are reasonably attributable to the non-membership period;


(b) a proportion (worked under subsection (3) of this section) of the total deductions of the partnership or trust for the income year so far as they are not reasonably attributable to a particular period within the income year.

Note:

If throughout the income year the entity is not a subsidiary member of any consolidated group or MEC group, this section does not affect the entity ' s ability to deduct for the income year the amount referred to in section 716-75 .


716-85(3)    
The proportion is worked out by multiplying the amount concerned by:

  • • the number of days that are in both the non-membership period and the * spreading period;

    • divided by:

  • • the number of days that are in the spreading period.
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