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-B - Working out the taxable income and tax loss for the income year of the change  

Working out the company's taxable income

SECTION 165-60   How to attribute assessable income to periods  

165-60(1)    
The company ' s assessable income for the income year is attributed to periods in the income year as follows.

165-60(2)    
The following amounts are attributed to periods so far as they are reasonably attributable to those periods:

(a) amounts included in the company ' s assessable income under section 97 (Beneficiary of a trust estate who is not under a legal disability) of the Income Tax Assessment Act 1936 ; or

(b) amounts included in the company ' s assessable income under section 98A (Non-resident beneficiaries assessable in respect of certain income) of the Income Tax Assessment Act 1936 .

165-60(2A)    

However, so much of an amount included in the company ' s assessable income under section 97 or 98A of the Income Tax Assessment Act 1936 as is a *capital gain that forms part of a *net capital gain is not attributed to a period.

165-60(3)    
The following items of assessable income are attributed to each period in proportion to the length of the period:

(a) insurance recoveries for loss of *live stock or trees;

See section 385-130 .

(b) amounts included in assessable income as a result of elections relating to the forced disposal of live stock;

See Subdivision 385-E and section 385-160 .

(c) recoupment of mains electricity connection expenditure.

See items 1.16 and 2.5 in section 20-30 , which lists deductions for which recoupments are assessable under Subdivision 20-A .

165-60(4)    

An amount included in the company ' s assessable income under section 385-135 (Election to defer including profit on second wool clip) is attributed to the period when the wool would ordinarily have been shorn.

165-60(5)    
An amount included in the company ' s assessable income that is a *dividend under:

(a) section 65 (Payments to associated persons); or

(b) (Repealed by No 79 of 2007 )

(c) section 109 (Excessive payments to shareholders and associates);

of the Income Tax Assessment Act 1936 is attributed to the period when the amount was paid or credited, whichever occurred first.

165-60(6)    
All other items of assessable income (except *full year amounts) are attributed to periods as if each period were an income year.

165-60(6A)    

A *net capital gain is not attributed to a period.

Note:

This is because Subdivision 165-CB provides for how the company must work out its net capital gain for the income year.

165-60(7)    

Full year amounts are amounts referred to in paragraphs (2)(a) and (b), so far as they are not reasonably attributable to a period, but do not include any part of a *capital gain that forms part of a *net capital gain. Full year amounts are brought in at a later stage of the process of calculating the company ' s taxable income for the income year.