Section 159ZRC — Income Tax Assessment Act 1936: Notional tax amount for recent accrual years

The notional tax amount for a recent accrual year is calculated in accordance with the formula: Tax on increased income – Tax on actual income where: Tax on increased income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows: (a) the annual arrears amount for the accrual year is to be added; (b) if the accrual year is also a rebate year—the total arrears amount for the accrual year is to be deducted; and (c) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the accrual year is to be added. Tax on actual income is the rebated tax on the taxable income of the accrual year, being that taxable income adjusted as follows (if applicable): (d) if the accrual year is also a rebate year—the total arrears amount for the accrual year is to be deducted; and (e) if, during the accrual year, there accrued an amount that is, or is part of, the total arrears amount for a rebate year before the current year—the amount that so accrued during the accrual year is to be added.