36Adjustment of taxable income in certain cases

36 Adjustment of taxable income in certain cases

(1) This section does not apply in relation to an applicant where the relevant year of income in relation to the applicant ends immediately before the prescribed date. (2) Where an applicant, by notice in writing furnished to the Secretary, requests the Secretary to give a direction under this section and the Secretary is satisfied that the applicant: (a) ceased, on any day after the first day of the relevant year of income and before the prescribed date, to carry on an income‑earning activity and, throughout the period commencing on the first‑mentioned day and including the prescribed date, did not carry on any income‑earning activity; (b) has not carried on, or is not likely to carry on, as the case requires, any income‑earning activity for a substantial period after the prescribed date; and (c) will be advantaged by the making of such a direction; the Secretary shall direct that, for the purposes of section 33, the amount of the taxable income of the applicant for the relevant year of income shall be the amount ascertained in accordance with subsection (3). (3) For the purposes of subsection (2), an amount shall be ascertained in accordance with the formula:

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where:

a is the amount of the taxable income of the applicant for the relevant year of income ascertained otherwise than in accordance with this section;

b is the number of days in the period that commenced on the day first referred to in paragraph (2)(a) and ended at the expiration of the prescribed date or, if that number is greater than 365, 365; and

c is the number (if any) by which the number of days in the period that commenced at the expiration of the relevant year of income and ended at the expiration of the prescribed date is less than b.

(4) In subsection (2), income‑earning activity, in relation to an applicant, means an activity that results in the applicant deriving income from personal exertion.