116OTaxable income and amount of components in certain cases

116O Taxable income and amount of components in certain cases

(1) This section applies if:

(a) an RSA provider has no taxable income; or

(b) an RSA provider has no RSA combined component; or

(c) the RSA combined component of an RSA provider is less than the RSA category A amount.

(2) If, apart from this subsection, an RSA provider has no taxable income, or the taxable income is less than the RSA category A amount:

(a) the RSA provider is taken to have both a taxable income and a tax loss in relation to the year of income; and

(b) the taxable income is taken to equal the RSA category A amount; and

(c) the tax loss is taken to be the amount that would have been the RSA provider’s tax loss if the RSA category A amount were not income derived; and

(d) the RSA combined component and the RSA category A component of that component are taken to be equal to the RSA category A amount; and

(e) all other components of taxable income are taken to be nil.

(3) If, apart from this subsection, the taxable income of an RSA provider is equal to or greater than the RSA category A amount:

(a) the RSA combined component and the RSA category A component of that component are taken to be equal to the RSA category A amount; and

(b) an amount equal to the difference between the RSA category A amount and the amount that would, apart from this subsection, have been the RSA combined component is to be applied in reducing the other components of taxable income in the following order:

(i) EIB;

(ii) CS/RA;

(iii) NCS.