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INCOME TAX ASSESSMENT ACT 1997 - SECT 219.50 Amount attributable to shareholders' share of income tax liability

INCOME TAX ASSESSMENT ACT 1997 - SECT 219.50

Amount attributable to shareholders' share of income tax liability

  (1)   Subsection   (2) applies to a * life insurance company in relation to the payment or refund mentioned in an item of a table in this Subdivision (except item   1 of the table in section   219 - 15).

Note:   The operation of this section is affected by section   219 - 75 if a tax offset under section   205 - 70 is applied to work out the company's income tax liability.

  (2)   For the purposes of this Part, the part of the payment or refund that is attributable to the * shareholders' share of the * income tax liability of the company for an income year must be worked out as follows:

Method statement

Step 1.   Work out the part of the company's total * income tax liability for the income year that is attributable to the company's shareholders.

  The result of this step is the shareholders' share of the income tax liability of the company for the income year.

Step 2.   Divide the step 1 result by that total * income tax liability.

  The result of this step is the shareholders' ratio for the income year.

Step 3.   Multiply the amount of the payment or refund by the * shareholders' ratio.

  The result of this step is the part of the payment or refund that is attributable to the * shareholders' share of the * income tax liability of the company for the income year.

  (3)   For the purposes of this Part, the estimate mentioned in item   1 of the table in section   219 - 15 (the part of a payment estimated to be attributable to the * shareholders' share of a company's * income tax liability for an income year) must be worked out on the basis of:

  (a)   subject to paragraph   (b), the method statement in subsection   (2); and

  (b)   the company's reasonable estimate of the amounts that, on the company's * assessment day for the income year, will be:

  (i)   its total income tax liability for the income year; and

  (ii)   the part of that total income tax liability that is attributable to its shareholders.

  (4)   In working out the part of the * income tax liability of a * life insurance company that is attributable to the shareholders of the company for the purposes of this section, regard is to be had to the accounting records of the company.

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