Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 701.65

Net income and losses for trusts and partnerships

Net income of partnerships and trusts

             (1)  If:

                     (a)  another provision of this Division applies for the purpose of:

                              (i)  working out the amount of the entity's liability (if any) for income tax calculated by reference to an income year; or

                             (ii)  working out the amount of the entity's taxable income for an income year; and

                     (b)  the entity is a trust or partnership;

the provision instead applies in a corresponding way for the purpose of working out the amount of the entity's net income, as defined in the Income Tax Assessment Act 1936 , (if any) for the income year.

Note:          Subsection 701-30(3) requires non-membership periods mentioned in that subsection to be treated as the start and end of an income year. This section would therefore also apply to those periods.

Partnership losses

             (2)  If:

                     (a)  another provision of this Division applies for the purpose of working out the amount of the entity's loss (if any) of a particular * sort for an income year; and

                     (b)  the entity is a partnership;

the provision instead applies in a corresponding way for the purpose of working out the amount of an entity's partnership loss, as defined in section 90 of the Income Tax Assessment Act 1936 , (if any) for the income year.

Note:          The provision applies normally to a trust, as it can have a loss of any sort worked out in the same way as a loss of the same sort for an entity of another kind.



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