A late balancing corporate tax entity is one that has obtained permission from the Commissioner of Taxation to use an approved substituted accounting period (SAP) where the SAP balance date is in lieu of the preceding 30 June. PS LA 2007/21 Substituted accounting periods (SAPs) gives more detail on SAPs.
If you are an eligible entity, you may haves the option to have your FDT liability determined at 30 June.
As a late balancer, when you are calculating your FDT offset if you have:
- elected to have your FDT liability determined on 30 June, special rules apply
- not elected to have your FDT liability determined on 30 June, the normal rules apply.
The Commissioner has the discretion not to apply the 30% FDT offset reduction. This is if it is determined that the deficit was caused by events outside the control of the entity.