(1) The company's taxable income for the income year is calculated as follows.
(2) Add up the * notional taxable incomes (if any) worked out under section 165-50 or 165-75.
Note: A notional loss for a period is not taken into account, but counts towards the company's tax loss for the income year.
(3) Add the * full year amounts referred to in subsection 165-60(7) (if any) and any * net capital gain of the company for the income year.
(4) Subtract the company's * full year deductions of these kinds:
(a) deductions for bad debts under section 8-1 (about general deductions) or section 25- 35 (about bad debts);
(c) deductions, so far as they are allowable under Division 8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;
unless they exceed the total of the * notional taxable incomes and the * full year amounts. (If they equal or exceed that total, the company does not have a taxable income for the income year.)
(5) If an amount remains, subtract from it the company's other * full year deductions, in the order shown in subsection 165-55(5), unless they exceed the amount remaining. (If they equal or exceed that amount, the company does not have a taxable income for the income year.)
(6) If an amount remains, it is the company's taxable income for the income year.
Working out the company's tax loss