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INCOME TAX ASSESSMENT ACT 1997 - SECT 768.510

Active foreign business asset percentage

  (1)   The active foreign business asset percentage of a company (the foreign company ) that is a foreign resident, in relation to the holding company mentioned in section   768 - 505, at the time of the CGT event mentioned in that section, is worked out in accordance with this section.

Market value method

  (2)   Work out that percentage under section   768 - 520 if:

  (a)   the holding company has made a choice under subsection   768 - 515(1) in relation to the foreign company for that time; and

  (b)   there is sufficient evidence of the * market value at that time of:

  (i)   all * assets included in the total assets of the foreign company at that time; and

  (ii)   all * active foreign business assets of the foreign company at that time.

Book value method

  (3)   Work out that percentage under section   768 - 525 if:

  (a)   the holding company has made a choice under subsection   768 - 515(2) in relation to the foreign company for that time; and

  (b)   there are * recognised company accounts of the foreign company for a period that ends no later than that time, but no more than 12 months before that time; and

  (c)   if the foreign company was in existence before the start of the period mentioned in paragraph   (b)--there are recognised company accounts of the foreign company for a period that ends at least 6 months, but no more than 18 months, before the end of the period mentioned in paragraph   (b).

Default method

  (4)   Otherwise, that percentage is:

  (a)   100% (if this section is being applied for the purposes of section   768 - 505 to reduce a * capital loss of the holding company); or

  (b)   zero (in any other case).


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