Taxation Determination

TD 2004/56W

Income tax: consolidation tax cost setting rules: step 3 of the allocable cost amount: how do you work out the paragraph 705-90(6)(b) of the Income Tax Assessment Act 1997 amount where only some of the undistributed profits of a year have recouped losses prior to the joining time?

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FOI status:

Notice of Withdrawal

Taxation Determination TD 2004/56 is withdrawn with effect from 1 July 2002.

1. Taxation Determination TD 2004/56 was about how to work out the adjustments under paragraph 705-90(6)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) in respect of accounting profits that recouped losses prior to the joining time, when the amount of the accounting profits taken into account under paragraph 705-90(6)(a) of the ITAA 1997 had been capped by subsection 705-90(3) of the ITAA 1997.

2. TD 2004/56 is withdrawn as a result of the repeal of paragraph 705-90(6)(b) by Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005).

Commissioner of Taxation
16 August 2006

Previously issued as Draft TD 2004/D33

References

ATO references:
NO 2004/9690

Related Rulings/Determinations:

TR 92/20

Subject References:
ACA
allocable cost amount
consolidation
cost setting
losses
profits
recouped losses
retained profits
step 3
tax cost setting amount
taxed profits
undistributed profits
untaxed profits

Legislative References:
TAA 1953 Pt IVAAA
ITAA 1997 705-90(2)
ITAA 1997 705-90(3)
ITAA 1997 705-90(6)(a)
ITAA 1997 705-90(6)(b)

Other References:
Explanatory Memorandum to the New Business Tax System (Consolidation) Bill (No. 1) 2002