Commonwealth Consolidated Acts Commonwealth Consolidated ActsObject
(1) The object of this section is to provide for a method of working out how the entity core rules apply to the entity for periods in the income year when the entity is not part of the group. The method involves treating each period separately with no netting off between them.
When section has effect
(2) This section has effect for the entity core purposes if:
(a) the entity is a * subsidiary member of the group for some but not all of an income year; and
(b) there are one or more periods in the income year (each of which is a non‑membership period ) during which the entity is not a subsidiary member of any * consolidated group.
Tax position of each non‑membership period to be worked out
(3) For every non‑membership period, work out the entity’s taxable income (if any) for the period, the income tax (if any) payable on that taxable income and the entity’s loss (if any) (a non‑membership period loss ) of each * sort for the period. Work them out:
(a) as if the start and end of the period were the start and end of the income year; and
(b) ignoring the operation of this section in relation to each other non‑membership period (if any).
Note: Other provisions of this Part are to be applied in working out the taxable income or loss, for example, section 701‑40 (Exit history rule).
Income tax for the financial year
(4) The entity’s income tax (if any) for the * financial year concerned is the total of every amount of income tax worked out for the entity under subsection (3).
Taxable income for the income year
(5) The entity’s taxable income for the income year is the total of every amount of taxable income worked out for the entity under subsection (3).
(6) The entity’s income tax worked out under subsection (4) is taken to be payable on the entity’s taxable income for the income year worked out under subsection (5), even if the amount of the tax differs from the amount that would be worked out by reference to that taxable income apart from subsection (5).
Loss for the income year
(7) The entity has a loss of a particular * sort for the income year if and only if it has a non‑membership period loss of that sort for the non‑membership period (if any) ending at the end of the income year. The amount of the loss for the income year is the amount of the non‑membership period loss.