Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 6/53)
Character Range: 2929144–2931890

otherwise be 2 or more successive periods are treated as a single period if the company satisfies the *business continuity test for all of them, considered as a single period (the business continuity test period). Apply the business continuity test to the *business the company carried on immediately before the end of the first of the periods (the test time).
Note 1: For the business continuity test, see Subdivision 165‑E.
Note 2: See section 165‑225 for a special alternative to subsections (3) and (4) of this section.

165‑50  Next, calculate the notional loss or notional taxable income for each period
 (1) The company has a *notional loss for a period if the deductions attributed to the period under section 165‑55 exceed the assessable income attributed to the period under section 165‑60. The notional loss is the amount of the excess.
For a period during which the company was in partnership,
 the notional loss is worked out under section 165‑75.
 (2) On the other hand, if that assessable income exceeds those deductions, the company has a notional taxable income for the period, equal to the excess.
For a period during which the company was in partnership,
 the notional taxable income is worked out under section 165‑75.
 (3) If the company has a *notional loss for none of the periods in the income year, this Subdivision has no further application, and the company's taxable income for the income year is calculated in the usual way.
The usual way of working out taxable income is set out in section 4‑15.

165‑55  How to attribute deductions to periods
 (1) The company's deductions for the income year are attributed to periods in the income year as follows.
 (2) The following deductions are attributed to each period in proportion to the length of the period:
 (a) deductions for the decline in value of a *depreciating asset;
See Division 40.
 (b) deductions for *exploration or prospecting, or *mining capital expenditure, in connection with mining or quarrying;
See section 40‑80 and Subdivisions 40‑H and 40‑I.
 (c) deductions for expenditure, deductions for which are spread over 2 or more income years, but not:
 (i) deductions for exploration or prospecting, or capital expenditure, in connection with mining or quarrying; or
See Subdivision 40‑I.
 (ii) *full year deductions (see subsection (5));
 (d) deductions for expenditure of capital monies in connection with an Australian *film.
See former section 124ZAFA of the Income Tax Assessment Act 1936.
 (3) All other deductions (except *full year deductions) are attributed to periods as if each period were an income year.
 (4) *Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the