Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Act 2019 (65 of 2019)

Schedule 1   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

11   Subsections 820-680(2) to (2E)

Repeal the subsections, substitute:

(2) If:

(a) an entity is required by an Australian law to prepare financial statements for a period in accordance with the *accounting standards; and

(b) a matter mentioned in subsection (1) is determined or calculated in accordance with the accounting standards for the purposes of the financial statements in relation to the period;

then, for the purposes of this Division, the matter is to be determined or calculated in relation to the period, or any part of the period, in the same way as it is determined or calculated in the financial statements.

(2A) If:

(a) a period in relation to which a matter mentioned in subsection (1) is determined or calculated (the current period ) is not the same as a period in relation to which paragraphs (2)(a) and (b) are satisfied; and

(b) the current period overlaps with one or more periods in relation to which paragraphs (2)(a) and (b) are satisfied;

then, for the purposes of this Division, the matter is to be determined or calculated in relation to the current period in the same way as it is determined or calculated in the financial statements for the most recent of the overlapping periods.