INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 820 - Thin capitalisation rules  

Subdivision 820-L - Record keeping requirements  

Records about asset revaluations

SECTION 820-985   Methodology of revaluation and independence of valuer  

820-985(1)  


An entity must keep records under this section for a revaluation of assets mentioned in subsection 820-680(2) (except a revaluation that need not comply with that subsection because of subsection 820-680(2A) ) or 820-684(2) .

820-985(2)  
The records must contain particulars about:


(a) the methodology used in making the revaluation (including any assumptions made); and


(b) how that methodology was applied (including the data and other information used); and


(c) who made the revaluation; and


(d) that person ' s qualifications and experience as an expert in valuing assets of the relevant kind; and


(e) the remuneration and expenses paid to that person.

820-985(3)  


If the revaluation was made in accordance with subsection 820-680(2B) (about external validation of a revaluation made internally), the records must also contain particulars of:


(a) who was the external expert referred to in that subsection; and


(b) his or her qualifications and experience as an expert in valuing assets of the relevant kind; and


(c) the remuneration and expenses paid to him or her; and


(d) his or her review of the methodology for making the revaluation (as required by subparagraph 820-680(2B)(b) (ii)); and


(e) his or her agreement that the methodology is suitable for making it (as required by subparagraph 820-680(2B)(b) (iii)).

This subsection extends to subsection 820-680(2B) as it applies because of subsection 820-684(5) .

Note:

Section 820-684 allows some revaluations that are not allowed by the accounting standards.

820-985(4)  
The entity must prepare the records before the time by which the entity must lodge its *income tax return for the income year in relation to all or a part of which the revaluation is made.

Note:

A person must comply with the requirements in section 262A of the Income Tax Assessment Act 1936 about the keeping of these records (see subsections (2AA) and (3) of that section).


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