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INCOME TAX ASSESSMENT ACT 1936 - SECT 425 Sometimes-exempt income etc.

INCOME TAX ASSESSMENT ACT 1936 - SECT 425

Sometimes-exempt income etc.

  (1)   Where an amount is not included in the eligible CFC's notional assessable income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer because:

  (a)   the eligible CFC passes the active income test for the period in relation to the eligible taxpayer; or

  (b)   subsection   385 (4) applies;

then the amount is sometimes - exempt income of the eligible CFC for the period in relation to the eligible taxpayer.

  (2)   Where an amount would, disregarding section   431, only be a notional allowable deduction of the eligible CFC for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer if the eligible CFC's sometimes - exempt income for the period in relation to the eligible taxpayer were instead notional assessable income, then the amount is a sometimes - exempt deduction of the eligible CFC for the period in relation to the eligible taxpayer.

  (3)   Where the eligible CFC's sometimes - exempt deductions for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceed its sometimes - exempt income for the period in relation to the taxpayer, the excess is a (sometimes - exempt income) loss of the eligible CFC for the period in relation to the eligible taxpayer.

  (4)   Where an eligible CFC's sometimes - exempt income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceeds its sometimes - exempt deductions for the period in relation to the taxpayer, the excess is a (sometimes - exempt income) gain of the eligible CFC for the period in relation to the eligible taxpayer.

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