Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 768 - Foreign non-assessable income and gains  

Subdivision 768-G - Reduction in capital gains and losses arising from CGT events in relation to certain voting interests in active foreign companies  

Active foreign business asset percentage

SECTION 768-515   Choices to apply market value method or book value method  

Choice for market value method

768-515(1)    
The holding company may choose to work out the * active foreign business asset percentage of the foreign company for the time of the CGT event under section 768-520 .

Choice for book value method

768-515(2)    
The holding company may choose to work out the * active foreign business asset percentage of the foreign company for the time of the CGT event under section 768-525 .

Method of making choice

768-515(3)    
The way an entity making a choice under subsection (1) or (2) prepares its * income tax return is sufficient evidence of the making of the choice.

Note:

If an entity does not make a choice under subsection (1) or (2), it will work out the active foreign business asset percentage of the foreign company in accordance with the default method in subsection 768-510(4) .