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

Special rules that apply if the company is in partnership

SECTION 165-80   How to calculate the company's share of a partnership's notional loss or notional net income for a period if both entities have the same income year  

165-80(1)    
This section applies if at any time during a period the company is a partner in a partnership that has an income year that starts and ends when the company's income year starts and ends.

165-80(2)    
The partnership's notional loss or notional net income for the period is calculated in the same way as the * notional loss or * notional taxable income of a company.

165-80(3)    
The company's share is calculated by dividing:

  • • the company's interest in the partnership's net income or partnership loss of the income year;
  • by

  • • the amount of that net income or partnership loss;
  • and expressing the result as a percentage.


    165-80(4)    
    However, if the partnership had neither a net income nor a partnership loss, the company's share is a percentage that is fair and reasonable having regard to the extent of the company's interest in the partnership.