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 165-85   How to calculate the company's share of a partnership's notional loss or notional net income for a period if the entities have different income years  

165-85(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 at a different time from when the company's income year starts and ends.

165-85(2)    
So much of the partnership's net income or partnership loss of an income year as was *derived during the period is a notional net income or notional loss of the partnership for the period. (For the purposes of this subsection, the partnership's net income or partnership loss is calculated without taking account of the partnership's *full year deductions for that income year.)

Note:

The partnership's full year deductions are dealt with in section 165-90 .

165-85(3)    
The company's share is calculated by dividing:

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

by

• the amount of that net income or partnership loss;

and expressing the result as a percentage.