What is the exclusion for private companies with no previous income tax liability?
The 30% FDT offset reduction does not apply in working out the amount of the tax offset to which the entity is entitled for the relevant year if: • the entity is a private company for the relevant year • 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 • the amount of the income tax liability for the relevant year is at least 90% of the amount of the deficit in the company’s franking account at the end of the relevant year, and • the company has not had an income tax liability for any income year before the relevant year. This exclusion for private companies with no previous income tax liability applies for the 2004–05 and later income years. 2 Note 2: Tax Laws Amendment (2005 Measures No. 2) Act 2005 received Royal Assent on 29 June 2005 as Act No 78 of 2005. The amendments made by this Act apply to assessments for the 2004–05 and later income years.
