Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-5
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CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS
Division 165
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Income tax consequences of changing ownership or control of a company
Subdivision 165-B
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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;
·
the amount of that net income or partnership loss;
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.
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:
by
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.
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