INCOME TAX ASSESSMENT ACT 1997 - SECT 165.65 How to calculate the company's taxable income for the income year

INCOME TAX ASSESSMENT ACT 1997 - SECT 165.65

  (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.