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Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-5 - CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS  

Division 165 - Income tax consequences of changing ownership or control of a company  

Subdivision 165-F - Special provisions relating to ownership by non-fixed trusts  

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SECTION 165-225   Special way of dividing the income year under Subdivision 165-B  

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165-225(1)  
If:


(a) the company is required to calculate:


(i) its taxable income and *tax loss for the income year under Subdivision 165-B ; and

(ii) its *net capital gain and *net capital loss for the income year under Subdivision 165-CB ; and


(b) the company meets the requirements of subsections 165-220(2) and (4) ;

then, in dividing the income year into periods, apply subsection (2) of this section instead of subsections 165-45(3) and (4) .

165-225(2)  
The last period ends at the end of the income year. Each period (except the last) ends at the earliest of:


(a) the latest time that would result in the persons holding *fixed entitlements to shares of the income or shares of the capital of:


(i) if the company meets the requirements of paragraph 165-220(2)(a) - the company; or

(ii) if the company meets the requirements of paragraph 165-220(2)(b) - the holding entity mentioned in that paragraph;
and the percentages of the shares that they hold, remaining the same during the whole of the period; and


(b) the times that, for all of the *non-fixed trusts, other than *excepted trusts, holding directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year, are the latest times that would result in individuals having *more than a 50% stake in their income or capital; and


(c) the earliest time in the period when a group (within the meaning of Schedule 2F to the Income Tax Assessment Act 1936 ) begins to *control a non-fixed trust, other than an excepted trust, that holds directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year.

Note:

See section 165-245 for when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.
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