Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of step 5A in the table in section 705 - 60, the step 5A amount is the sum of all * FRT disallowed amounts of the joining entity that:
(a) had not been applied by the joining entity under paragraph 820 - 56(2)(b) for the income year in which the joining time occurred or any earlier income year; and
(b) accrued to the joined group before the joining time (see subsection (2) of this section).
(2) For the purposes of subsection (1), a * FRT disallowed amount accrued to the joined group before the joining time if and to the extent that, assuming that as it arose it were instead a profit that was accruing, a distribution of that profit would have been a distribution made to the joined group out of profits that accrued to the joined group before the joining time.
(3) However, a * FRT disallowed amount is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705 - 60.