Document ID: chunk:federal_register_of_legislation:C2005A00078:clause:1_2
Version: federal_register_of_legislation:C2005A00078
Segment Type: clause
Provision Reference: sch 1 cl 2
Character Range: 2009–2834

2  At the end of section 205‑70
Add:

30% reduction will generally not apply to private company's first year of tax liability

 (5) The 30% reductions in steps 1 and 2 of the method statement in subsection (2) do not apply in working out the amount of the *tax offset to which the entity is entitled for the relevant year if:
 (a) the entity is a *private company for the relevant year; and
 (b) if the company did not have the tax offset (but had all its other tax offsets) it would have had an income tax liability for the relevant year; and
 (c) the company has not had an income tax liability for any income year before the relevant year; and
 (d) the amount of the liability referred to in paragraph (b) is at least 90% of the amount of the *deficit in the company's *franking account at the end of the relevant year.