Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where an amount is not included in the eligible CFC's notional assessable income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer because:
(a) the eligible CFC passes the active income test for the period in relation to the eligible taxpayer; or
(b) subsection 385 (4) applies;
then the amount is sometimes - exempt income of the eligible CFC for the period in relation to the eligible taxpayer.
(2) Where an amount would, disregarding section 431, only be a notional allowable deduction of the eligible CFC for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer if the eligible CFC's sometimes - exempt income for the period in relation to the eligible taxpayer were instead notional assessable income, then the amount is a sometimes - exempt deduction of the eligible CFC for the period in relation to the eligible taxpayer.
(3) Where the eligible CFC's sometimes - exempt deductions for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceed its sometimes - exempt income for the period in relation to the taxpayer, the excess is a (sometimes - exempt income) loss of the eligible CFC for the period in relation to the eligible taxpayer.
(4) Where an eligible CFC's sometimes - exempt income for a statutory accounting period (being the eligible period or an earlier period) in relation to the eligible taxpayer exceeds its sometimes - exempt deductions for the period in relation to the taxpayer, the excess is a (sometimes - exempt income) gain of the eligible CFC for the period in relation to the eligible taxpayer.