When calculating a private companys distributable surplus, can the Commissioner change amounts shown in the company’s accounting records?
Yes. For income years preceding the income year in which 1 July 2006 occurred (generally the 2005-06 and earlier income years: If the Commissioner considers that the company’s accounting records significantly undervalue its assets or overvalue its provisions, the Commissioner may substitute a different amount. This could have the effect of increasing the private company’s distributable surplus. For the income year in which 1 July 2006 occurred and later income years (generally from the 2006-07 income year): The Commissioner may substitute a different value if the assets are undervalued or overvalued or the provisions undervalued or undervalued (See subsection 109Y(2).
Related Questions
- When calculating a private companys distributable surplus, can the Commissioner change amounts shown in the company’s accounting records?
- Is internally generated goodwill included in the calculation of the amount of a private company’s distributable surplus?
- How is a private company’s distributable surplus calculated?
