What is a late balancing corporate tax entity?

A late balancing corporate tax entity is one that has obtained the Commissioner's permission to use an income year that ends on a date other than 30 June (the standard income year). These entities are granted an approved substituted accounting period (SAP) which is in lieu of an income year ending on 30 June.

Generally, a late balancing corporate tax entity generally has its 2001-2002 income year end after 30 June 2002.

For more information on SAPs refer to Income Tax Ruling IT 2360.

Example 1
Marlyn Ltd is a public company. It obtained the Commissioner's approval to have its income year start on 1 October and end on 30 September. Marlyn Ltd is a late balancing company. This means that Marlyn Ltd's 2001-02 income year would end on 30 September 2002 in lieu of 30 June 2002.

    Last modified: 09 Aug 2016QC 16691