Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.385

When this section applies

  (1)   This section applies if:

  (a)   your * hedging financial arrangement election applies to a * hedging financial arrangement; and

  (b)   you do not meet a requirement of section   230 - 355 or 230 - 360 or paragraph   230 - 365(c) in relation to the arrangement.

  (2)   For the purposes of paragraph   (1)(b), treat the requirement in paragraph   230 - 365(c) as being met even if you do not assess the hedging of the risk mentioned in that paragraph, but you can demonstrate that you intend to do so.

Commissioner may determine matter under section   230 - 360

  (3)   If:

  (a)   you fail to determine a matter in relation to the * hedging financial arrangement under section   230 - 360; or

  (b)   you determine a matter in relation to the arrangement under section   230 - 360 but the determination does not satisfy the requirements of subsection   230 - 360(2);

the Commissioner may determine that matter, in a way that satisfies the requirements of section   230 - 360. A reference in this Division to a determination made under that section is treated as including a reference to a determination under this subsection.

Election does not apply to hedging financial arrangements you start to have after failing to comply with requirements

  (4)   Your * hedging financial arrangement election does not apply to a * hedging financial arrangement you start to have:

  (a)   after you fail to meet the requirement mentioned in paragraph   (1)(b) in relation to the arrangement mentioned in that paragraph; and

  (b)   before a date (if any) determined by the Commissioner.

  (5)   The Commissioner may make a determination under paragraph   (4)(b) only if satisfied that you are unlikely to fail again to meet a requirement of section   230 - 355 or 230 - 360 or paragraph   230 - 365(c) in relation to a * hedging financial arrangement.

  (6)   In deciding whether to make a determination under paragraph   (4)(b), the Commissioner must have regard to:

  (a)   your record keeping practices; and

  (b)   your compliance history; and

  (c)   any changes that have been made to:

  (i)   your accounting systems and controls; and

  (ii)   your internal governance processes;

    to ensure that failures of the kind mentioned in paragraph   (1)(b) do not happen again; and

  (d)   any other relevant matter.

Commissioner may still exercise powers under section   230 - 380

  (7)   This section does not prevent the Commissioner from exercising the Commissioner's powers under section   230 - 380 in relation to the * hedging financial arrangement mentioned in subsection   (1).

Table of sections

230 - 390   Objects of this Subdivision

230 - 395   Election to rely on financial reports

230 - 400   Financial reports election where differing income and accounting years

230 - 405   Commissioner discretion to waive requirements in paragraphs 230 - 395(2)(c) and (e)

230 - 410   Financial arrangements to which the election applies

230 - 415   Financial arrangements not covered by election

230 - 420   Effect of election to rely on financial reports

230 - 425   When election ceases to apply

230 - 430   Balancing adjustment if election ceases to apply