Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p42
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 42/45)
Character Range: 6012911–6016605

year and losses, except losses transferred to the transferee under Subdivision 707‑A.

Income and gains
Column 1                                                                                             Column 2
The transferee's ordinary income, statutory income or gains of this kind:                            Are worked out by reference to this amount:
  1 *Capital gains                                                                                   The result of:
                                                                                                     (a) step 2 of the method statement in subsection 102‑5(1); or
                                                                                                     (b) step 3 of the method statement in section 165‑111;
                                                                                                     (as appropriate) for the transferee and the income year
  3 *Exempt film income                                                                              The transferee's *net exempt film income for the income year remaining after deduction of the transferee's *film losses (if any)
  4 *Assessable film income                                                                          The transferee's *net assessable film income for the income year remaining after deduction of the transferee's *film losses (if any)
  5 *Exempt income other than *exempt film income                                                    The amount of the transferee's *net exempt income for the income year that would have remained after deducting from it the transferee's *tax losses (if any), assuming the amount of that income were what it would have been had the transferee not had *exempt film income for the year
  6 Assessable income that is not attributable to *capital gains and is not *assessable film income  The amount (if any) that would have been the transferee's taxable income (if any) for the income year if the transferee had not had for the income year:
                                                                                                     (a) any *net capital gain; or
                                                                                                     (b) any *net assessable film income;
                                                                                                     reduced by the amount (the transferee's grossed‑up franking offset amount) worked out in accordance with paragraph (3A)(c)

 (3A) For the purposes of subsection (3):
 (a) the transferee's *tax losses to which paragraph (b) of, or the table in, that subsection applies are to be worked out on the assumption that the transferee chooses to deduct under subsection 36‑17(2) all of the tax losses and that subsection 36‑17(5) does not apply to that choice; and
 (b) except as mentioned in paragraph (a) of this subsection, amounts worked out as described in column 2 of an item of the table in subsection (3) are to be worked out making the same choices as the transferee actually makes in working out its taxable income as stated in its *income tax return for the income year; and
 (c) the transferee's grossed‑up franking offset amount mentioned in column 2 of item 6 in the table is the amount worked out using the formula:

  where:
  franking offsets means the total amount of *tax offsets to which the transferee is entitled for the income year under Division 207 and Subdivision 210‑H (except those that are subject to the refundable tax offset rules because of section 67‑25).
 (4) The second condition is that once the amounts of the transferee's income or gains have