Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 9/53)
Character Range: 2936635–2939220

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.

Working out the company's tax loss

165‑70  How to calculate the company's tax loss for the income year
 (1) The company's tax loss for the income year is calculated as follows.
 (2) Total the *notional losses worked out under section 165‑50 or 165‑75.
 (3) Add to the total in subsection (2) the amount (if any) by which the company's *full year deductions of these kinds:
 (a) deductions for bad debts under section 8‑1 (about general deductions) or section 25‑35 (about bad debts);
 (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;
exceed the total of:
 (d) the *notional taxable incomes (if any); and
To work out the notional taxable income: see section 165‑50.
 (e) the *full year amounts referred to in section 165‑60 (if any); and
 (f) any *net capital gain of the company for the income year.
 (4) If the company *derived exempt income, subtract its *net exempt income (worked out under section 36‑20).
 (5) Any amount remaining is the company's tax loss for the income year, which is called a loss year.
Note: The meanings of tax loss and loss year are modified by section 36‑55 for a corporate tax entity that has an amount of excess franking offsets.
To find out how much of the tax loss can be deducted in later income years: see Subdivision 165‑A.
To find out how to deduct it: see section 36‑17.

Special rules that apply if the company is in partnership

165‑75  How to calculate the company's notional loss or notional taxable income for a period when the company was a partner
 (1) This section applies if at any time during a period the company was a partner in one or more partnerships.
 (2) The company has a *notional loss for the period if the total (the loss total) of:
 (a) the deductions attributed to the period under section 165‑55; and
 (b) the *company's share of each *notional loss (if any) of a partnership for the period;
exceeds the total (the income total) of:
 (c)