Taxation Determination

TD 94/65W

Income tax: property development: is a 'management reserve' taken into account in calculating notional taxable income under the estimated profits basis of returning income from a long term construction contract?

• Please note that the PDF version is the authorised version of this withdrawal notice.
  TD 94/65 has been withdrawn as part of a project to review public rulings.
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Notice of Withdrawal

Taxation Determination TD 94/65 is withdrawn with effect from today.

1. TD 94/65 explains that only actual costs that are identified as likely to be incurred during the contract period and which are properly deductible, are taken into account in calculating 'notional taxable income' under the estimated profits basis. General claims for 'management reserves' are not sufficiently informative to be taken into account.

2. TD 94/65 is being withdrawn to form part of a consolidated ruling on the tax treatment of long term construction contracts.

3. The issue covered by TD 94/65 is now covered in Taxation Ruling TR 2017/D8.

Commissioner of Taxation
18 October 2017

Previously issued as Draft TD 93/D255

References

ATO references:
NO 1-BD70DD7

Related Rulings/Determinations:

TD 92/125
TD 92/131
TD 92/186
TD 94/39
IT 2450

Legislative References:
ITAA 51(1)