Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 375.805

(1) A *tax loss in an income year has a film component if:
. your *film deductions exceed the sum of:
. your *assessable film income; and
. your *net exempt film income. The amount of the film component is the excess
or the tax loss, whichever is less.

(2) Your film deductions for an income year are the following:

   (a)  amounts you can deduct for the income year under sections 124ZAF and
        124ZAFA of the Income Tax Assessment Act 1936;

   (b)  amounts that you can deduct for the income year and to which section
        124ZAO of the Income Tax Assessment Act 1936 applies in relation to
        you for the income year.

(3) Your assessable film income for an income year is so much of the amount,
or the sum of the amounts, to which section 26AG of the Income  Tax Assessment
Act 1936 applies in relation to you for the year of income as is assessable
income.

(4) Your net exempt film income for an income year is your *exempt film income
for that year reduced by:

   (a)  any taxes payable in respect of that income in a country or place
        outside Australia; and

   (b)  any expenses (not of a capital nature) so far as you incurred them
        during that year in deriving that income.

(5) Your exempt film income for an income year is so much of the amount, or
the sum of the amounts, to which section 26AG of the Income  Tax Assessment
Act 1936 applies in relation to you for the year of income as is exempt
income.