Document ID: chunk:federal_register_of_legislation:C2010C00685:clause:7_3
Version: federal_register_of_legislation:C2010C00685
Segment Type: clause
Provision Reference: sch 7 cl 3
Character Range: 113397–114868

3  Section 70‑20 (link note)
Repeal the link note, substitute:

[The next section is section 70‑35.]

70‑35  Transitional provision for partnerships with live stock

 (1) This section affects the calculation of a partner's share in a partnership's net income or partnership loss for the 1997‑98 income year if the partnership has live stock that is trading stock on hand at the start of that income year.

 (2) Calculate the amount of each partner's share as if the net income or partnership loss were worked out using:
 (a) the value of the live stock at the start of the 1997‑98 income year worked out under subsection 70‑40(1) on the basis of its value taken into account at the end of the 1996‑97 income year for the purposes of working out that partner's share of the partnership's net income or partnership loss for the 1996‑97 income year; and
 (b) the value of the live stock at the end of the 1997‑98 income year elected by the partnership (and not the partner) under Subdivision 70‑C of the Income Tax Assessment Act 1997.

Note 1: The value of the live stock at the end of the 1996‑97 income year depended on the choices made by the partner, not the partnership. (See section 93 of the Income Tax Assessment Act 1936, which does not apply to assessments for the 1997‑98 income year.)

Note 2: Choices made by the partnership under Division 385 of the Income Tax Assessment Act 1997 may affect the value of the live stock under Subdivision 70‑C of that Act.