INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-B - The accruals/realisation methods  

The accruals method

SECTION 230-170   Allocating gain or loss to income years  

230-170(1)  
You are taken, for the purposes of section 230-15, to make, for an income year, a gain or loss equal to a part of a gain or loss if:


(a) that part of the gain or loss is allocated to an interval under section 230-135; and


(b) that interval falls wholly within that income year.

230-170(2)  
If:


(a) a part of a gain or loss is allocated to an interval under section 230-135; and


(b) that interval straddles 2 income years;

you are taken, for purposes of section 230-15, to make a gain or loss equal to so much of that part of the gain or loss as is allocated between those income years on a reasonable basis.

230-170(2A)  


Subsections (1) and (2) do not apply to a part of a gain or loss if:


(a) subsection 230-100(3A) or 230-130(4A) applies to the gain or loss; and


(b) that part of the gain or loss is allocated to an interval under section 230-135; and


(c) that interval ends before or during the income year during which the gain or loss becomes sufficiently certain (as mentioned in paragraph 230-100(3A)(b) or 230-130(4A)(f), whichever is applicable).

Instead, you are taken, for the purposes of section 230-15, to make, for that income year, a gain or loss equal to that part of that gain or loss.

230-170(3)  
If:


(a) a *head company of a *consolidated group or *MEC group has a *financial arrangement; and


(b) a subsidiary member of the group ceases to be a member of the group at a particular time (the leaving time ); and


(c) immediately after the leaving time, the head company no longer has the arrangement because the subsidiary member ceased to be a member of the group;

an income year of the group is taken, for the purposes of applying this section to the group and the arrangement, to end at the leaving time.


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