Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1992No. 98, 1992 - SECT 8

8. Section 6 of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of "taxable income" and
substituting the following definition: " 'taxable income' means:

   (a)  except in a case where paragraph (b) or (c) applies - the amount
        remaining after deducting from the assessable income all allowable
        deductions; or

   (b)  in a case where paragraph (c) does not apply and Subdivision B of
        Division 2A of Part III applies - the amount calculated in accordance
        with section 50C; or

   (c)  in a case where:
    (i)   a company becomes a PDF during the year of income
and is still a PDF at the end of the year of income; and

        (ii)   the PDF component for the year of income is a nil amount; the
               amount that, if the period ('the notional year') beginning at
               the start of the year of income and ending immediately before
               the company becomes a PDF were a year of income of the company,
               would be the taxable income of the notional year because of
               paragraph (a) or (b), as the case requires;";

   (b)  by inserting in subsection (1) the following definitions: " 'PDF'
        (pooled development fund) means a company that is a PDF within the
        meaning of the Pooled Development Funds Act 1992, but does not include
        such a company in the capacity of a trustee; 'PDF component', in
        relation to a company that becomes a PDF during the year of income and
        is still a PDF at the end of the year of income, means:

   (a)  in a case where the amount that, if:
    (i)    the period beginning at the start of the year of
income and ending immediately before the company becomes a PDF were a year of
income of the company; and
    (ii)   the period ('the PDF notional year') beginning
when the company becomes a PDF and ending at the end of the year of income
were a year of income of the company; and

        (iii)  paragraph (c) of the definition of 'taxable income' were
               omitted; would be the company's taxable income of the PDF
               notional year is $1 or more - that amount; or

   (b)  otherwise - a nil amount;".