Income Tax Assessment Act 1936
This section applies if at any time during a period the trust was a partner in one or more partnerships. 268-70(2)
The trust has a notional loss for the period if the total (the loss total ) of:
(a) the deductions attributed to the period under section 268-35 ; and
(b) the trust ' s share of each notional loss (if any) of a partnership for the period;
exceeds the total (the income total ) of:
(c) the assessable income attributed to the period under section 268-40 ; and
(d) the trust ' s share of each notional net income (if any) of a partnership for the period.
The notional loss is the amount of the excess.
A notional loss is taken into account in working out the trust ' s tax loss under section 268-60 .
On the other hand, if the income total exceeds the loss total, the trust has a notional net income for the period, equal to the excess.
A notional net income is taken into account in working out the trust ' s net income under section 268-45 .268-70(4)
If the trust has a notional net income for all periods in the income year, this Subdivision has no further application, and the trust ' s net income for the income year is worked out in the usual way.
The usual way of working out net income is set out in section 95.