INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2A - Calculation of taxable income  

Subdivision B - Calculation of taxable income where disqualifying event occurs  

SECTION 50C   CALCULATION OF TAXABLE INCOME  

50C(1)   [Taxable income where Subdivision applies]  

Where this Subdivision applies in relation to a company in relation to a year of income, the taxable income of the company of the year of income shall, notwithstanding section 48 , be calculated in accordance with this section.

50C(2)   [Taxable income of company]  

Subject to subsection (3), the taxable income of the company of the year of income shall be the amount (if any) remaining after deducting from the sum (in this section referred to as the ``income amount'' ) of -

(a) if the company has a notional taxable income in respect of a relevant period, or has notional taxable incomes in respect of relevant periods, in relation to the year of income - the amount of that notional taxable income or the sum of the amounts of those notional taxable incomes, as the case may be; and

(b) if a full-year amount is included or full-year amounts are included in the assessable income of the company of the year of income - that full-year amount or the sum of those full-year amounts, as the case may be; and

(ba) any net capital gain that accrued to the company in respect of the year of income;

the sum (in this section referred to as the ``deductible amount'' ) of -

(c) the amount of any eligible notional loss of the company in relation to the year of income;

(d) if a full-year deduction is, or full-year deductions are, allowable to the company in relation to the year of income, being a full-year deduction or full-year deductions:

(i) allowable under section 51 in respect of a bad debt or under section 63 ; or

(ii) to which paragraph 50F(1)(aa) applies;

the amount of that full-year deduction or the sum of the amounts of those full-year deductions, as the case may be; and

(e) if, by reason of subsection 50F(3) , there is a partnership deduction, or there are partnership deductions, in relation to the company in relation to the year of income - the amount of that partnership deduction or the sum of the amounts of those partnership deductions, as the case may be.

50C(3)   [Income amount in excess of deductible amount]  

Where -

(a) in the application of subsection (2) in relation to a company in relation to a year of income, the income amount exceeds the deductible amount; and

(b) a full-year deduction is, or full-year deductions are, allowable to the company in relation to the year of income, not being a full-year deduction or full-year deductions:

(i) allowable under section 51 in respect of a bad debt or under section 63 ; or

(ii) to which paragraph 50F(1)(aa) applies,

the taxable income of the company of the year of income shall be -

(c) in a case where there is only one full-year deduction to which paragraph (b) applies - the amount (if any) remaining after deducting from the amount of the excess referred to in paragraph (a) so much of the amount of that full-year deduction as does not exceed the amount of that excess; and

(d) in any other case - the amount (if any) remaining after deducting successively from the amount of the excess referred to in paragraph (a) the amounts of any full-year deductions included in the following classes of full-year deductions that are allowable to the company in relation to the year of income:

(i) full-year deductions allowable under section 78 or 78B ;

(ii) full-year deductions allowable under Subdivision B or BA of Division 3 or under Part XII ;

(iii) (Omitted by No 107 of 1989)

(iv) full-year deductions allowable under section 79E , 79F , 80 , 80AAA or 80AA ;

(v) full-year deductions allowable under section 122D , 122DB , 122DD , 122DF , 122DG , 122JE , 124AD , 124ADB , 124ADD , 124ADF , 124ADG or 124AF ;

(vi) full-year deductions allowable under section 122J , 122JF or 124AH ;

(vii) full-year deductions allowable under Division 16C .

50C(4)   [Set off of successive deductions]  

Where, in the application of subsection (3) in relation to a company in relation to a year of income, deductions included in 2 or more of the classes of full-year deductions specified in paragraph (3)(d) are required to be deducted successively from the amount by which the income amount exceeds the deductible amount (in this subsection referred to as the ``excess amount''), deductions included in the first of those classes shall be set off against that excess amount and, if the excess amount exceeds the amount of the deductions included in that class, the deductions included in the next of those classes shall be set off against the excess amount reduced by the amount of the deductions of the first of those classes and so on until either the deductions included in the classes of deductions referred to in paragraph (3)(d) are exhausted or the excess amount is exhausted.