Commentary

D7.5116 Smoothing the floor

Corporate tax
Corporate tax | Commentary

D7.5116 Smoothing the floor

Corporate tax | Commentary

D7.5116 Smoothing the floor

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

In general the investment return will either be consistently on the needs or the floor basis. It can happen however that although the needs basis applies generally there are isolated accounting periods in which the floor bites, often as a result of changes in the valuation basis adopted by a company or as a reflection of wider market events.

To deal with this and to reduce the effect of otherwise

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