Income Tax Act 2007 section 803

Prohibition against double counting

Section 803 prevents the same amounts of income or consideration from being counted more than once when calculating income arising from chargeable events connected with film-related trading losses.

• When calculating income on a chargeable event, any consideration already taken into account in an earlier chargeable event for the same individual and trade must be excluded.
• Any deemed income already recognised under earlier chargeable events is deducted from the current calculation, but the result cannot be reduced below nil.
• Where a firm carries on more than one trade, the double-counting rules apply across all of the firm's trades, not just one.
• If multiple chargeable events occur simultaneously across a firm's trades, income is calculated separately for each event, totalled, and then reduced to eliminate any duplication.