INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-H - Exceptions  

SECTION 230-455   Certain taxpayers where no significant deferral  

230-455(1)  
This Division does not apply in relation to your gains or losses from a *financial arrangement for any income year if:


(a) you are:


(i) an individual; or

(ii) a superannuation entity (within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993), a *superannuation fund that is not such an entity, a managed investment scheme (within the meaning of the Corporations Act 2001) or an entity with a similar status to such a scheme under a *foreign law relating to corporate regulation; or

(iii) an *ADI, a *securitisation vehicle, an entity that is required to register under the Financial Sector (Collection of Data) Act 2001 or an entity that would be required to register under that Act if it were a corporation; or

(iv) an entity other than an entity of a kind mentioned in subparagraph (i), (ii) or (iii); and


(b) where subparagraph (a)(ii) applies - you satisfy subsection (2) for the income year in which you start to have the arrangement; and


(c) where subparagraph (a)(iii) applies - you satisfy subsection (3) for the income year in which you start to have the arrangement; and


(d) where subparagraph (a)(iv) applies - you satisfy subsection (4) for the income year in which you start to have the arrangement; and


(e) either:


(i) the arrangement is to end not more than 12 months after you start to have it; or

(ii) the arrangement is not a *qualifying security.

230-455(2)  
An entity satisfies this subsection for an income year if:


(a) the value of the entity's assets (see subsection (5)) for the income year (worked out at the end of the income year) is less than $100 million if the income year is the one in which the entity comes into existence; or


(b) the value of the entity's assets for the immediately preceding income year (worked out at the end of that immediately preceding income year) is less than $100 million if the income year is an income year after the one in which the entity comes into existence.

230-455(3)  
An entity satisfies this subsection for an income year if:


(a) the entity's *aggregated turnover for the income year (worked out at the end of the income year) is less than $20 million if the income year is the one in which the entity comes into existence; or


(b) the entity's aggregated turnover for the immediately preceding income year (worked out at the end of that immediately preceding income year) is less than $20 million if the income year is an income year after the one in which the entity comes into existence.

230-455(4)  
An entity satisfies this subsection for an income year if:


(a) either:


(i) the entity's *aggregated turnover for the income year (worked out at the end of the income year) is less than $100 million if the income year is the one in which the entity comes into existence; or

(ii) the entity's aggregated turnover for the immediately preceding income year (worked out at the end of that immediately preceding income year) is less than $100 million if the income year is an income year after the one in which the entity comes into existence; and


(b) either:


(i) the value of the entity's financial assets (see subsection (5)) for the income year (worked out at the end of the income year) is less than $100 million if the income year is the one in which the entity comes into existence; or

(ii) the value of the entity's financial assets for the immediately preceding income year (worked out at the end of that immediately preceding income year) is less than $100 million if the income year is an income year after the one in which the entity comes into existence; and


(c) either:


(i) the value of the entity's assets (see subsection (5)) for the income year (worked out at the end of the income year) is less than $300 million if the income year is the one in which the entity comes into existence; or

(ii) the value of the entity's assets for the immediately preceding income year (worked out at the end of that immediately preceding income year) is less than $300 million if the income year is an income year after the one in which the entity comes into existence.

230-455(5)  
For the purposes of subsections (2) and (4), the value of the entity's assets or financial assets is to be determined in accordance with:


(a) if the entity applies *accounting standard AAS 25 in preparation of its financial reports - that accounting standard or another accounting standard prescribed by the regulations for the purposes of this paragraph; or


(b) if paragraph (a) does not apply and the entity prepares its financial reports in accordance with the *accounting principles - the entity's financial reports; or


(c) if paragraphs (a) and (b) do not apply and the entity prepares its financial reports in accordance with an accounting standard comparable to accounting standard AAS 25 under a *foreign law - that comparable standard; or


(d) if paragraphs (a), (b) and (c) do not apply - commercially accepted valuation principles.

230-455(6)  
Subsection (1) does not apply to your gains or losses from a *financial arrangement for an income year if:


(a) you have made an election under subsection (7) in that income year or an earlier income year; and


(b) you start to have the arrangement after the beginning of the income year in which you make the election.

230-455(7)  
An election under this subsection is an election to have this Division apply to all of the *financial arrangements that you start to have in the income year in which the election is made or a later income year.

230-455(8)  
An election under subsection (7) is irrevocable.

230-455(9)  
This section does not apply in relation to your gains or losses from a *financial arrangement that you start to have after a time if you are not an individual and you failed to satisfy subsection (2), (3) or (4) (as the case may be) for an income year ending before that time.


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