Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018 (94 of 2018)
Schedule 2 Consequential amendments
Part 1 Amendments applying from the 2017-18 income year
Income Tax Assessment Act 1997
1 Subsection 995-1(1) (definition of corporate tax rate for imputation purposes)
Repeal the definition, substitute:
corporate tax rate for imputation purposes , of an entity for an income year, means:
(a) unless paragraph (b) applies - the entity's *corporate tax rate for the income year, worked out on the assumptions that:
(i) the entity's *aggregated turnover for the income year is equal to its aggregated turnover for the previous income year; and
(ii) the entity's base rate entity passive income (within the meaning of the Income Tax Rates Act 1986) for the income year is equal to its base rate entity passive income for the previous income year; and
(iii) the entity's assessable income for the income year is equal to its assessable income for the previous income year; or
(b) if the entity did not exist in the previous income year - the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(a) of the Income Tax Rates Act 1986.
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