Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p29
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 69694–72355

10E of Part III:
Omit "Shares in PDFs", substitute "PDFs (pooled development
funds)".
  22. Before section 124ZM:
Insert the following heading:
               "Subdivision A - Shares in PDFs".
  23. After section 124ZR:
Insert the following Subdivisions:
   "Subdivision B - Components of the taxable income of PDFs
Definitions
  "124ZS. In this Subdivision:
  'non-CGT assessable income' means an amount included in
assessable income otherwise than under Part IIIA or Subdivision
C of this Division;
  'SME investment' means an investment other than an
unregulated investment;
Note: 'SME' stands for small and medium enterprises.
  'unregulated investment' has the same meaning as in the
Pooled Development Funds Act 1992.
SME assessable income
SME assessable income
  "124ZT. (1) A company's SME assessable income of a year of
income is the sum of:
  (a) so much of the company's non-CGT assessable income of the
year of income as was derived:
    (i) from, or from the disposal of, an SME investment of the
company; and
    (ii) at a time when the company was a PDF; and
  (b) any assessable income allocated to the company's SME
assessable income under section 124ZZB.
Note: Section 124ZZB deals with capital gains etc.
When assessable income derived
  "(2) For the purposes of paragraph (1)(a), if an amount is
derived by a company during, but not at a particular time
during, a year of income, the amount is taken to have been
derived by the company on the last day of the year of income.
SME income component
Full-year PDFs
  "124ZU. (1) The SME income component of a year of income of a
company that is a PDF throughout the year of income is so much
of the company's taxable income of the year of income as does
not exceed the amount (if any) remaining after deducting from
the company's SME assessable income of the year of income any
deductions allowable to the company in relation to the year of
income.
Part-year PDFs
  "(2) The SME income component of a year of income of a
company that becomes a PDF during the year of income and is
still a PDF at the end of the year of income is so much of the
company's adjusted taxable income of the year of income as does
not exceed the amount (if any) remaining after deducting from
the company's SME assessable income of the year of income any
deductions where both of the following conditions are
satisfied:
  (a) the deductions were allowable to the company in relation
to the year of income;
  (b) the deductions were taken into account in working out the
company's PDF component of the year of income. For this
purpose, 'adjusted taxable income' means so much of the
company's taxable income of the year