Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)
Schedule 2 Consolidation etc.
Part 9 International tax
Division 1 Elections about valuing interests in FIFs held as trading stock
Income Tax Assessment Act 1997
49 At the end of Subdivision 717-G
717-320 Exit history rule does not affect when leaving entity may elect to value trading stock at market value
Section 701-40 (the exit history rule) does not affect the time limit set by subsection 70-70(3) for the leaving entity to make an election under subsection 70-70(2).
Note: Subsection 70-70(2) lets the leaving entity elect to value at market value interests in a FIF that are trading stock of the entity.
Example: At the leaving time the single entity rule stopped applying to the leaving entity, causing it to start holding as trading stock an interest in a FIF that the head company of the group had earlier held as trading stock. The leaving entity had not held an interest in any FIF as trading stock before becoming a subsidiary member of the group.
Subsection 70-70(3) and this section let that entity make an election under subsection 70-70(2) before lodging its income tax return for the first income year that:
(a) ends after the leaving time; and
(b) is an income year in which a notional accounting period for the FIF ends.