Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 563

             (1)  If:

                     (a)  the FIF was a partner in a partnership at the end of the accounting period of the partnership; and

                     (b)  that accounting period of the partnership ends in the relevant period;

the notional income of the FIF of the relevant period includes the interest of the FIF in any net income of the partnership of that accounting period.

             (2)  For the purposes of subsection (1):

                     (a)  a partnership has a net income in relation to an accounting period of the partnership if the amount that, if the partnership were a FIF and that accounting period were a notional accounting period, would be the notional income of the partnership of that accounting period under this section exceeds the notional deductions that would be allowable from that notional income; and

                     (b)  the excess is taken to be the amount of that net income.