Income Tax Assessment Act 1997
SECTION 705-100 Losses accruing to joined group before joining time - step 5 in working out allocable cost amount 705-100(1)
For the purposes of step 5 in the table in section 705-60 , the step 5 amount is the sum of all losses of any * sort of the joining entity that: (a) had not been * utilised by the joining entity for the income year in which the joining time occurred or any earlier income year; and (b) accrued to the joined group before the joining time (see subsection 705-90(8) ).
705-100(2)
However, a loss is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705-60 .
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CCH Note:
S 705-102 will be inserted by No 23 of 2024, s 3 and Sch 2 item 8B, effective 1 July 2024. For application provisions, see note under s
705-60
. S 705-102 will read:
SECTION 705-102 FRT disallowed amounts accruing to joined group before joining time
-
step 5A in working out allocable cost amount
]
705-102(1)
For the purposes of step 5A in the table in section
705-60
, the step 5A amount is the sum of all *FRT disallowed amounts of the joining entity that:
(a)
had not been applied by the joining entity under paragraph
820-56(2)(b)
for the income year in which the joining time occurred or any earlier income year; and
(b)
accrued to the joined group before the joining time (see subsection
(2)
of this section).
705-102(2)
For the purposes of subsection
(1)
, a *FRT disallowed amount accrued to the joined group before the joining time if and to the extent that, assuming that as it arose it were instead a profit that was accruing, a distribution of that profit would have been a distribution made to the joined group out of profits that accrued to the joined group before the joining time.
705-102(3)
However, a *FRT disallowed amount is not to be taken into account under subsection
(1)
to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section
705-60
.
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