INCOME TAX ASSESSMENT ACT 1997 - SECT 705.95 Pre - joining time distributions out of certain profits--step 4 in working out allocable cost amount

INCOME TAX ASSESSMENT ACT 1997 - SECT 705.95

    For the purposes of step 4 in the table in section   705 - 60, the step 4 amount is the sum of all distributions made by the joining entity before the joining time that:

  (a)   the * head company receives directly, or would receive indirectly if entities interposed between the head company and the joining entity successively distributed any distribution they received immediately after receiving it; and

  (b)   were made out of profits:

  (i)   that did not accrue to the joined group before the joining time (see subsection   705 - 90(7)); or

  (ii)   that accrued to the joined group before the joining time and recouped losses of any * sort that accrued to the joined group before that time (see subsection   705 - 90(8)).

Note:   As well as subsection   705 - 90(7), paragraph   705 - 90(9)(b) and subsection   705 - 90(10) are relevant to working out whether or not profits accrued to the joined group before the joining time.