Income Tax (Consequential Amendments) Act 1997 (39 of 1997)

Schedule 1   Consequential amendments of the Income Tax Assessment Act 1936

210   After section 124ZS

Insert:

124ZTA Taxable income in first year as PDF if PDF component is nil

(1) This section applies if:

(a) a company becomes a PDF during a year of income and is still a PDF at the end of the year of income; and

(b) the PDF component for the year of income is a nil amount; and

(c) the year of income is the 1997-98 year of income or a later one.

(2) The company’s taxable income of the year of income is the amount that, if the period (the notional year ) beginning at the start of the year of income and ending immediately before the company becomes a PDF were a year of income of the company, would be the company’s taxable income of the notional year.