Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 124ZU

Full - year PDFs

  (1)   The SME income component of a year of income of a company that is a PDF throughout the year of income is so much of the company's taxable income of the year of income as does not exceed the amount (if any) remaining after deducting from the company's SME assessable income of the year of income any deductions allowable to the company in relation to the year of income.

Part - year PDFs

  (2)   The SME income component of a year of income of a company that becomes a PDF during the year of income and is still a PDF at the end of the year of income is so much of the company's adjusted taxable income of the year of income as does not exceed the amount (if any) remaining after deducting from the company's SME assessable income of the year of income any deductions where both of the following conditions are satisfied:

  (a)   the deductions were allowable to the company in relation to the year of income;

  (b)   the deductions were taken into account in working out the company's PDF component of the year of income.

For this purpose, adjusted taxable income means so much of the company's taxable income of the year of income as does not exceed its PDF component of the year of income.