Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to an indirect value shift if:
(a) the indirect value shift happens in the 2007 - 08 income year or a later income year; and
(b) the scheme that results in the indirect value shift was entered into before the start of the 2007 - 08 income year.
(2) Paragraph 727 - 470(2)(a) of the Income Tax Assessment Act 1997 (as in force immediately before the commencement of this section) continues to have effect in relation to the indirect value shift as if the repeals and amendments made by Schedule 1, Parts 1 and 2 of Schedule 3 and Schedule 8 to the Tax Laws Amendment (Small Business) Act 2007 had not been made.
Method statement
Step 1. Work out the total of the taxable components of all the amounts (if any) of transitional termination payments received by you (including any directed termination payments received on your behalf) in any income year before the income year in which you reached your preservation age.
Step 2. Work out the total of the taxable components of all the directed termination payments (if any) received on your behalf at an earlier time, in the income year in which you reached your preservation age or later.
Step 3. Work out the amount (the cap difference ) by which $1,000,000 exceeds the ETP cap for the income year in which you receive the payment to which subsection (1) applies.
Step 4. The cap excess is the amount (not less than zero) by which the sum of the amounts in steps 1 and 2 exceeds the cap difference in step 3.
Method statement
Step 1. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a).
Step 2. Add to the step 1 result the excess that is covered by paragraph (1)(c).
The result is the tax offset to which the entity is entitled under this section for the relevant year.
Method statement
Step 1. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred before 30 June 2003.
Step 2. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred on 30 June 2003.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account during the period of 12 months immediately preceding that date.
Step 3. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred after 30 June 2003.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account after that date and before the end of the last day on which the entity incurred a franking deficit tax liability in the relevant year.
Step 4. Work out the total amount of franking deficit tax that is covered by paragraph (1)(b) and was incurred in the 2001 - 2002 income year.
Step 5. Work out the excess that is covered by paragraph (1)(c).
Step 6. Add up the results of steps 1, 2, 3, 4 and 5. The result is the tax offset to which the entity is entitled under this section for the relevant year.
Method statement
Step 1. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred on or before the 30 June in the relevant year.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account during the period of 12 months immediately preceding that 30 June.
Step 2. Work out the total amount of franking deficit tax that is covered by paragraph (1)(a) and was incurred after the 30 June in the relevant year.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account after that date and before the end of the last day on which the entity incurred a franking deficit tax liability in the relevant year.
Step 3. Work out the total amount of franking deficit tax that is covered by paragraph (1)(b) in relation to a previous income year and was incurred on or before the 30 June in that income year.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account during the period of 12 months immediately preceding that 30 June.
Step 4. Work out the total amount of franking deficit tax that is covered by paragraph (1)(b) in relation to a previous income year and was incurred after the 30 June in that income year.
Then reduce it by 30% if it exceeds 10% of the total amount of franking credits that arose in the entity's franking account after that date and before the end of the last day on which the entity incurred a franking deficit tax liability in that income year.
Step 5. Add up the results of steps 3 and 4 for all the previous income years covered by paragraph (1)(b).
Step 6. Work out the excess that is covered by paragraph (1)(c).
Step 7. Add up the results of steps 1, 2, 5 and 6. The result is the tax offset to which the entity is entitled under this section for the relevant year.
Method statement
Step 1. Work out the total amount incurred by the borrower under or in respect of the capital protected borrowing for the income year, ignoring amounts that are not in substance for capital protection or interest.
Step 2. Work out the total interest that would have been incurred for the income year on a borrowing or provision of credit of the same amount as under the capital protected borrowing at the rate applicable under either or both of subsections (2) and (3).
Step 3. If the step 1 amount exceeds the step 2 amount, the excess is reasonably attributable to the capital protection for the income year.
Table of Subdivisions
815 - A Cross - border transfer pricing
Table of sections
815 - 1 Application of Subdivision 815 - A of the Income Tax Assessment Act 1997
815 - 5 Cross - border transfer pricing guidance
815 - 10 Scheme penalty applies in pre - commencement period as if only the old law applied
815 - 15 Application of Subdivisions 815 - B, 815 - C and 815 - D of the Income Tax Assessment Act 1997