Document ID: chunk:federal_register_of_legislation:C2024A00023:clause:2_8b
Version: federal_register_of_legislation:C2024A00023
Segment Type: clause
Provision Reference: sch 2 cl 8B
Character Range: 8578–9732

8B  After section 705‑100
Insert:

705‑102  FRT disallowed amounts accruing to joined group before joining time—step 5A in working out allocable cost amount
 (1) For the purposes of step 5A in the table in section 705‑60, the step 5A amount is the sum of all *FRT disallowed amounts of the joining entity that:
 (a) had not been applied by the joining entity under paragraph 820‑56(2)(b) for the income year in which the joining time occurred or any earlier income year; and
 (b) accrued to the joined group before the joining time (see subsection (2) of this section).
 (2) For the purposes of subsection (1), a *FRT disallowed amount accrued to the joined group before the joining time if and to the extent that, assuming that as it arose it were instead a profit that was accruing, a distribution of that profit would have been a distribution made to the joined group out of profits that accrued to the joined group before the joining time.
 (3) However, a *FRT disallowed amount is not to be taken into account under subsection (1) to the extent that it reduced the undistributed profits comprising the step 3 amount in the table in section 705‑60.