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 165-90   Company's full year deductions include a share of partnership's full year deductions  

165-90(1)  
This section applies if at any time during the income year the company is a partner in a partnership that has one or more *full year deductions for the income year of the partnership that corresponds to the income year of the company.

165-90(2)  
The partnership's *full year deductions are treated as full year deductions of the company, but only to the extent of the *company's share.

165-90(3)  
If the partnership's income year is the same as the company's, 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.

    165-90(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.

    165-90(5)  
    If the partnership's income year does not start and end at the same time as the company's income year, the company's share is a percentage that is fair and reasonable having regard to all relevant circumstances.


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