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  

Working out the company's taxable income

SECTION 165-50   Next, calculate the notional loss or notional taxable income for each period  

165-50(1)  
The company has a *notional loss for a period if the deductions attributed to the period under section 165-55 exceed the assessable income attributed to the period under section 165-60. The notional loss is the amount of the excess.

For a period during which the company was in partnership, the notional loss is worked out under section 165-75 .

165-50(2)  
On the other hand, if that assessable income exceeds those deductions, the company has a notional taxable income for the period, equal to the excess.

For a period during which the company was in partnership, the notional taxable income is worked out under section 165-75 .

165-50(3)  
If the company has a *notional loss for none of the periods in the income year, this Subdivision has no further application, and the company's taxable income for the income year is calculated in the usual way.

The usual way of working out taxable income is set out in section 4-15 .


 

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