Income Tax Assessment Act 1997
You may make an election to rely on financial reports if you are eligible under subsection (2) to make the election for the income year in which you make the election. Eligibility to make election 230-395(2)
You are eligible to make an election to rely on financial reports for an income year if:
(a) you prepare a financial report for that income year in accordance with:
(i) the *accounting principles; or
(ii) if the accounting principles do not apply to the preparation of the financial report - comparable standards for accounting made under a *foreign law that apply to the preparation of the financial report under a foreign law; and
(b) the financial report is audited in accordance with:
(i) the *auditing principles; or
(ii) if the auditing principles do not apply to the auditing of the financial report - comparable standards for auditing made under a foreign law; and
(c) your auditor has not qualified the auditor ' s report on your financial report for that income year or any of the last 4 financial years in a respect that is relevant to the taxation treatment of *financial arrangements; and
(d) your accounting systems and controls and your internal governance processes are reliable; and
(e) no report of an audit or review conducted in the income year, or any of the preceding 4 income years, has included an adverse assessment of your accounting systems in a respect that is relevant to the taxation treatment of financial arrangements.
Paragraph (b) - section 230-500 allows regulations to be made specifying particular foreign accounting and auditing standards as ones that are to be treated as comparable with Australian accounting and auditing principles for the purposes of this Division.
For the purposes of paragraphs (c) and (e), a qualification or assessment may be relevant to the taxation treatment of financial arrangements even though it does not deal with the amount or timing of recognition of gains or losses (but relates, for example, to the reliability of the accounting systems through which information about financial arrangements is recorded).
Paragraph (2)(e) does not apply to a report of:
(a) an internal audit or review that you conduct; or
(b) an audit or review of a kind prescribed by the regulations for the purposes of this paragraph. Election irrevocable 230-395(4)
An election under subsection (1) is irrevocable.
The election may cease to apply under section 230-425 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.