INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

SECTION 328-112   Working out whether you are a small business entity for certain small business concessions - entities connected with you  

328-112(1)  
For the purpose of working out whether you are a small business entity for the 2007-08, 2008-09, 2009-10 or 2010-11 income year (each a relevant income year ) for the purposes of a provision to which subsection (3) applies:


(a) subsection 328-125(4) of the Income Tax Assessment Act 1997 does not apply; and


(b) the following subsection applies instead.

328-112(2)  
An entity (the first entity ) controls a discretionary trust for a relevant income year if, for any of the 4 income years (a previous income year ) before that year:


(a) if the previous income year is before the 2007-08 income year - the trustee of the trust made a distribution of $100,000 or more to the first entity, any of its affiliates, or the first entity and any of its affiliates; or


(b) if the previous income year is the 2007-08 income year or a later income year:


(i) the trustee of the trust paid to, or applied for the benefit of, the first entity, any of the first entity ' s affiliates, or the first entity and any of its affiliates, any of the income or capital of the trust; and

(ii) the percentage (the control percentage ) of the income or capital paid or applied is at least 40% of the total amount of income or capital paid or applied by the trustee for that year.

328-112(3)  
This subsection applies to the following provisions:


(a) Subdivisions 328-D of the Income Tax Assessment Act 1997 (simpler rules for depreciating assets);


(b) Subdivision 328-E of the Income Tax Assessment Act 1997 (simplified trading stock rules);


(c) (Repealed by No 23 of 2012)


(d) sections 82KZM and 82KZMD of the Income Tax Assessment Act 1936 (deducting certain prepaid expenses immediately);


(e) section 170 of the Income Tax Assessment Act 1936 (standard 2-year period for amending assessments).


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.