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 165-65   How to calculate the company's taxable income for the income year  

165-65(1)    
The company's taxable income for the income year is calculated as follows.

165-65(2)    
Add up the *notional taxable incomes (if any) worked out under section 165-50 or 165-75 .

Note:

A notional loss for a period is not taken into account, but counts towards the company's tax loss for the income year.

165-65(3)    

Add the *full year amounts referred to in subsection 165-60(7) (if any) and any *net capital gain of the company for the income year.

165-65(4)    
Subtract the company's *full year deductions of these kinds:

(a) deductions for bad debts under section 8-1 (about general deductions) or section 25-35 (about bad debts);

(b) (Omitted by No 121 of 1997);

(c) deductions, so far as they are allowable under Division 8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;

unless they exceed the total of the *notional taxable incomes and the *full year amounts. (If they equal or exceed that total, the company does not have a taxable income for the income year.)

165-65(5)    
If an amount remains, subtract from it the company's other *full year deductions, in the order shown in subsection 165-55(5), unless they exceed the amount remaining. (If they equal or exceed that amount, the company does not have a taxable income for the income year.)

165-65(6)    
If an amount remains, it is the company's taxable income for the income year.