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.


    View surrounding sectionsView surrounding sectionsBack to top


    This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.