INCOME TAX ASSESSMENT REGULATIONS 1997

PART 6 - THE DICTIONARY  

Division 960 - General  

Subdivision 960-D - Functional currency  

REGULATION 960-80.03   TRANSLATION RULES - TRANSLATION FROM APPLICABLE FUNCTIONAL CURRENCY INTO AUSTRALIAN CURRENCY  

960-80.03(1)  
For subsection 960-80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005 (No 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960-80(1) of the Act, the entity may translate the amount using:


(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or


(b) the exchange rate applicable on the last day of the entity's income year.

960-80.03(2)  
For subsection 960-80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005 (No 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960-80(1) of the Act, the entity may translate the amount using:


(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or


(b) the exchange rate applicable on the last day of the CFC's statutory accounting period.

960-80.03(3)  
For subsection 960-80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960-80(1) of the Act, the entity must translate the amount using:


(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or


(b) if the entity makes an election in writing to use the exchange rate applicable on the last day of the entity's income year - that exchange rate.

960-80.03(4)  
For subsection 960-80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960-80(1) of the Act, the entity must translate the amount using:


(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or


(b) if the entity makes an election in writing to use the exchange rate applicable on the last day of the CFC's statutory accounting period - that exchange rate.

960-80.03(5)  
An election under paragraph (3)(b) or (4)(b) is irrevocable.

960-80.03(6)  
In this regulation:

CFC
has the meaning given by Part X of the Income Tax Assessment Act 1936 .

registered
means registered in accordance with the Legislation Act 2003 .

statutory accounting period
has the meaning given by Part X of the Income Tax Assessment Act 1936 .




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.