Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 165.65

(1) The company's taxable income for the income year is calculated as follows.

(2) Add up the *notional taxable incomes (if any) worked out under section
165-50 or 165-75. Note: A notional loss for a period is not taken into
account, but counts towards the company's tax loss for the income year.

(3) Add the *full year amounts referred to in subsection 165-60(7) (if any).

(4) Subtract the company's *full year deductions of these kinds:

   (a)  deductions allowable for bad debts under Division 8 (which is about
        deductions);

   (b)  deductions allowable for bad debts under section 63 of the
        Income Tax Assessment Act 1936;

   (c)  deductions, so far as they are allowable under Division 8 (which is
        about deductions) because Subdivision H (Period of deductibility of
        certain advance expenditure) of Division 3 of Part III of the Income 
        Tax Assessment Act 1936 applies to the company in relation to the
        income year; unless they exceed the total of the *notional taxable
        incomes and the

*full year amounts. (If they equal or exceed that total, the company does not
have a taxable income for the income year.)

(5) If an amount remains, subtract from it the company's other *full year
deductions, in the order shown in subsection 165- 55(5), unless they exceed
the amount remaining. (If they equal or exceed that amount, the company does
not have a taxable income for the income year.)

(6) If an amount remains, it is the company's taxable income for the income
year.