Procedures for electing that the rollover provisions apply
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How to elect for rollover relief
If an election for rollover relief is required, a CFC - or in the case of group rollovers, both the transferor and transferee - must elect in writing that the particular rollover provision applies.
The CFC must normally make the election. An attributable taxpayer may, however, make an election on behalf of a wholly owned CFC.
Timing of elections
An election must be lodged with the Tax Office on or before the lodgment of a return by an attributable taxpayer that is affected by the election. If more than one attributable taxpayer is affected, the election will be valid if made on or before the lodgment of the affected tax returns.
Self-assessment - extension of time to make an election
The self-assessment guidelines do not apply to an election by a CFC for rollover relief and Taxation Ruling IT 2624 does not authorise an extension of time in which to make the election. If an extension of time is required, the CFC or its agent should approach the Tax Office. For convenience, the request should go to the tax office where the tax return of the largest attributable taxpayer is lodged. If this is not readily apparent, the request can be lodged at any tax office.
Which officer makes the election?
The person who acts for the CFC should make the election. In Australia, that person would normally be the public officer of the company. However, foreign laws may require a different officer to act for the company. Whoever is authorised - whether under the foreign law or, if no law governs this, under the constituent document of the CFC - may make the election.
Election by an agent in Australia
The requirement that a CFC make an election will also be satisfied where an agent makes the election for or on behalf of the CFC, provided that the person is authorised by the CFC to do so. For example, the Australian parent of the CFC or the CFC's tax agent in Australia, if authorised, could make the election.
Last modified: 05 Dec 2006QC 17522