Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 12   Personal service business determinations

Part 1   Amendments applying from the 2000-2001 income year

Income Tax Assessment Act 1997

8   At the end of section 87-65


Third alternative - unrelated clients test was met but 80% or more of income from same source because of unusual circumstances

(5) The conditions in this subsection are that:

(a) the entity could reasonably be expected to meet, or met, the unrelated clients test under section 87-20; and

(b) because of unusual circumstances applying to the entity in the income year, 80% or more of the individual's *personal services income (not including income mentioned in subsection 87-15(4)) included in the entity's *ordinary income or *statutory income could reasonably have been expected to be, or would have been, income from the same entity (or one entity and its *associates); and

(c) the individual's personal services income included in the entity's ordinary income or statutory income could reasonably be expected to be, or was, from the entity conducting activities that met the unrelated clients test under section 87-20.