Write at T all assessable income less deductions that equals the amount at T Total profit or loss item 6 plus or minus the reconciliation adjustments at item 7.
If this amount is a loss, print L in the box at the right of the amount.
If the company has a taxable income of $1 or more, transfer the amount at T to A Taxable or net income in the Calculation statement.
The company’s tax loss at T is the excess of its total deductions (except tax losses for earlier income years) over its total assessable income and net exempt income, see section 36-10 of the ITAA 1997. The company’s net exempt income is calculated under section 36-20 of the ITAA 1997 and is not necessarily equal to the amount written at V Exempt income item 7. Check that the amount at B Other assessable income item 7 includes the amount of net exempt income taken into account in calculating the company’s tax loss. If the company has a tax loss at T, write zero (0) at A Taxable or net income in the Calculation statement.
If the company has excess franking offsets that can be converted under section 36-55 of the ITAA 1997 into a tax loss to be carried forward (see Excess franking offsets), do not include at T Taxable/net income or loss the amount of that tax loss. However, that amount should be taken into account in calculating the company’s tax loss at U Tax losses carried forward to later income years item 13. This means that a company may have a taxable income at T and a tax loss carried forward at item 13. Alternatively, if the company’s total deductions exceed total assessable income and net exempt income, it would show an amount at T that, disregarding section 36-55, would have been its tax loss for the income year.