Income Tax Assessment Act 1936

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

Division 57 - Tax exempt entities that become taxable  

Subdivision 57-K - Balancing adjustments  

SECTION 57-110   APPORTIONMENT OF BALANCING ADJUSTMENTS  

57-110(1)  
If, apart from this subsection, a balancing adjustment provision (see subsection (2)) would:


(a) require an amount to be included in the transition taxpayer ' s assessable income for the transition year or a later year of income in respect of particular expenditure; or


(b) allow an amount as a deduction from the transition taxpayer ' s assessable income for the transition year or a later year of income in respect of particular expenditure;

then only so much of the amount as is worked out using the following formula is so included or allowable:


Actual deductions ×   Amount concerned
Actual deductions + Notional deductions

where:

actual deductions is the sum of all deductions actually allowed or allowable to the transition taxpayer for the expenditure under the deduction rule to which the balancing adjustment provision relates (see subsection (2)).

notional deductions is the sum of all deductions for the expenditure that would have been allowable to the transition taxpayer under the deduction rule to which the balancing adjustment provision relates, if the transition taxpayer had never been wholly exempt from income tax.

57-110(2)  


Each balancing adjustment provision and its related deduction rule are shown in an item of the table. Provisions of the Income Tax Assessment Act 1997 are shown in ordinary text, and provisions of the Income Tax Assessment Act 1936 are shown in bold .


Balancing adjustment provisions and related deduction rules
Item Topic Balancing adjustment provision Deduction rule to which the balancing adjustment provision relates
1 Capital works: buildings, structural improvements, environment protection earthworks and extensions, alterations or improvements Section 43-40 Division 43 and whichever of former Divisions 10C and 10D of Part III is appropriate
2 (Repealed by No 101 of 2006 )
2A Capital allowances Section 40-285 Division 40
3 - 4 (Repealed by No 101 of 2006 )
5 Industrial property (copyright in Australian film) Former sections 124N and 124P Former Division 10B of Part III
5A - 6 (Repealed by No 101 of 2006 )
7 R & D Sections 40-292, 40-293, 355-315 and 355-525 Section 40-25, 355-305 or 355-520
8 Scientific research Subsection 73A(4) Section 73A
8A - 9 (Repealed by No 101 of 2006 )

Note:

Item 7 of the table is expanded by section 355-340 of the Income Tax (Transitional Provisions) Act 1997 .

57-110(3)  
(Repealed by No 16 of 1998)


 

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