Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 165.65

How to calculate the company's taxable income for the income year

             (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



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